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Analysts at Royal Bank of Canada (RBC) believe that the Reserve Bank of Australia (RBA) are likely to stand pat on its monetary policy decision due later today at 0430 GMT.

Key Quotes:

“It is a line ball call for the RBA at this board meeting.  

Further rate cuts are largely a matter of when, not if.  

We still think the RBA can afford to be patient, awaiting some of the more timely and policy sensitive data (including Aug retail sales later in the week) to get a better sense of the expected upturn in activity.  

These data in recent months have been mixed.  

We lean towards no cut. However, as we noted following the Governor’s recent Armidale speech, the RBA often delivers what is priced by the market, especially if a cut is likely at some point before year end so a move would probably not be surprising.”