ANZ analysts note that the RBA Board kept the cash rate at 0.75% in November, as commentators widely expected and the market priced in.
Key Quotes
“A new sentence appeared at the start of the final paragraph that supports our view that a rate cut in December is unlikely. We think disappointment on growth and the labour market will bring the RBA back to the easing table in 2020.”
“Some may dispute the confidence of the RBA’s view that rate cuts are supporting employment and income growth, given the weakness in consumer sentiment and retail sales and the softness in some labour market forward indicators, such as ANZ Job Ads.”
“On housing, it is interesting to note that despite two months of around 5% gains in housing finance approvals for investors the statement says that, “demand for credit by investors is subdued.” We think the risks to this are weighted to the upside. The September housing finance data, due later this week, will be interesting in this regard.”
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