According to analysts at TD Securities, The Reserve Bank of Australia (RBA) is more than likely to remain unmoved on interest rates for the time being, but TDS is expecting the Aussie central bank to keep their eyes cast towards the upside, and hopeful for improving growth figures.
Key highlights
TDS, along with global markets, expect the RBA to maintain their cash rate at 1.5% on Tuesday’s showing, although TDS sees the RBA maintaining an upbeat outlook while maintaining a neutral policy stance.
Aussie growth has been firmer lately, with unemployment lower and core infation has eased to 1.75% annualized since the RBA’s August Statement of Monetary Policy, and TDS expects the only meaningful change from the RBA to be dropping their unemployment forecast from 5.5% to 5.25% for December.
With the odds of an RBA on hold results firmed-in at 95%, TDS expects the RBA’s optimism to remain on the high side, as the Australian central bank sees GDP growth of 3% and unemployment at 5% nearly two years ahead of schedule, and changes to forecasts are likely to remain limited to the December 2018 set, with longer timeframes remaining unchanged.
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