RBA monetary policy meeting announcement due at 0430GMT on Tuesday this week.
No change to policy settings is the overwhelming expectation.
Westpac have instead had a bigger picture look at the RBA, this in (very) brief from their latest:
- The RBA has given itself maximum flexibility around the policy outlook.
- It's only real commitment has been setting the three year bond rate at 0.25%, indicating a steady cash rate for the next three years.
- The RBA is in a good space at the moment, providing fairly vague guidance with respect to future policy. Over the next three years that is much more likely to change with a need to provide further stimulus than any need to tighten policy.
- As with the US when the need to tighten does arrive it is more likely to be due to asset market imbalances than inflation.
