RBA likely to pause again at 1.5% – TDS

Analysts at TD Securities and unanimous consensus expect the RBA to pause again at 1.5% tomorrow.

Key Quotes

“The Aug and Sep statements were virtually identical and we see no reason for the RBA to deviate from the script.”

“Recent data has confirmed the RBA’s optimism – Annual GDP in Q2 expanded at the fastest pace in 6 years and the RBA’s alternative measure of unemployment, the underutilisation rate, fell to 5yr lows. US-China trade tensions and consumption remain ongoing uncertainties.”

“Recent polls have the median forecast for the RBA to hike to 1.75% in Q4’19. TD base case is May and Nov.”