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In its latest client note, National Australia Bank (NAB) pushed back its call for a Reserve Bank of Australia (RBA) rate hike to mid-2019 from a hike predicted in November 2018.

Key Quotes:

An RBA rate hike seen in mid-2019.

Previous call was for a rate hike in November 2018.

“It’ll be the first in a gradual rate hiking cycle.

No sign yet of stronger wages growth …  considerable uncertainty around the timing at which wages growth will strengthen.

Unemployment stuck around 5.5% for the best part of a year.

The timing of RBA hike still very data dependent.

NAB expect the economy to strengthen, leading to a declining unemployment rate.

Should eventually translate into stronger wages growth.

Give the RBA confidence that inflation will track back to its 2.5% target.”