In view of Researchers at UOB Group in the latest Quarterly Global Outlook, the RBA is seen keeping the ‘wait-and-see’ stance for the rest of the year.
Key Quotes
“As expected, the RBA kept its OCR on hold at 1.00% in September”.
“We expect the RBA to monitor developments for a few months. By November, the RBA will have received more data on inflation, as well as further labour market information. For now, there are good reasons for the RBA to remain on a “wait-and-see” approach, especially since the OCR is already at a historic low of 1.00%”.
“Our current forecast is for a steady OCR of 1.00% for the rest of this year. Further easing in 2020 cannot be ruled out. We will, as such, keep watch on global trade tensions, soft consumer spending, undershooting inflation, and mediocre wages, which will be factors that may prompt us to revise our view further ahead”.
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