Analysts at Westpac expect that the RBA will again hold rates unchanged at their November meeting, as they have since they last cut rates in August 2016.
“The Governor’s decision statement will repeat the line that: “further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual”. We expect the RBA cash rate to remain unchanged at 1.50% throughout 2018, 2019, and during 2020.”
“This month’s decision will be followed by the release of updated commentary and forecasts with the RBA’s Statement on Monetary Policy on Nov 9. We expect the Bank to retain its upbeat 3.25% growth forecasts for both 2018 and 2019 with no change to its trajectory for inflation. But a lower starting point is likely to lower the forecast profile for the unemployment rate. See p2 for more detail.”