NAB had been forecasting a rate cut from the Reserve Bank of Australia this year.
The bank has updated its RBA outlook today, now says no cut this year, the Bank to remain on hold throughout 2017: We have removed our expectation of a 25bp rate cut in late 2017
NAB cites:
- RBA becoming increasingly focused on financial stability considerations
- Particularly household balance sheets ... amidst elevated levels of household debt
- Recent comments from RBA officials raise the possibility that macro-prudential measures may be stepped up
NAB says it continues to flag the risk of further monetary policy easing at some point
- given our concerns about economic growth and the labour market in 2018
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NAB heeding comments from Governor Lowe (like these):
- RBA Lowe: Some signs debt levels are affecting household spending
And also dep gov Michele Bullock:
- RBA's Bullock: Key focus is the strength of household balance sheets
- RBA's Bullock - remarks on house price measures
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Earlier today I posted up WPAC's Bill Evans on his outlook for the Reserve Bank of Australia:
- Westpac's Evans' outlook for the April RBA meeting (& beyond)
