According to analysts at Goldman Sachs, the ‘bottom line’ for the Reserve Bank of Australia (RBA) will be keeping the central bank on hold well into the future.
Key highlights
As GS noted, The RBA’s September Board Meeting Minutes remained overall positive with very little adjustments to the overall outlook, while the RBA did make a point of noting above-trend growth and a still-declining unemployment rate, coupled with a slow-yet-steady improvement in wage growth.
The RBA, according to GS, looks comfortable with the current developments within the Australian housing markets, despite the recent mortgage rate hikes made by some Aussie banks.
Because of the RBA’s comfy-looking stance on current economic conditions, GS is expecting any adjustments on rates to not materialize until sometime towards the tail-end of 2019.
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