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The Capital Economics analysts believe that the Reserve Bank of Australia (RBA) is likely to stand pat on its monetary policy when its meets next Tuesday at 0430 GMT.

Key Quotes:

“The Reserve Bank of Australia hasn’t learned much on the state of the economy since its last meeting and we expect it to leave rates unchanged at its next meeting on Tuesday.  

However, we still expect the labour market to worsen further which should eventually prompt the Bank to slash rates to 0.5%.”