Westpac Chief Economist Bill Evans latest on what to expect from the Reserve Bank of Australia at the December meeting
(December 6)
- There is virtually no chance of a policy move
- The minutes from the November meeting signalled that the Bank is in a 'wait and see' mode
- There was an air of uncertainty around both the housing market and the labour market
- Considerable time will be required before the picture around both becomes clearer
- From our perspective we expect stability in the housing market and some gradual pick-up in labour market conditions as stronger overall growth lifts it out of the current 'slow patch'
- Consequently, we expect that a central bank, which must be questioning the effectiveness of yet more monetary stimulus, will be unlikely to see the need to adjust policy throughout the entire run of 2017
(Bolding mine)
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And, as a ps. Citi has dropped its forecasts from more RBA rate cuts today also. Citing Governor Lowe's speech overnight in their forecast change. (More on Lowe's speech, here: Aussie press on RBA's Lowe speech overnight)
