Earlier previews for the Reserve Bank of Australia are here:
- There are (at least) 3 reasons for the RBA to cut the cash rate - preview
- RBA October monetary policy decision due Tuesday (1st Oct.) - preview
- All 4 big Australian banks calling for an RBA rate cut next week. Not everyone agrees.
- RBA meeting next week - quick preview
I'm falling in line with the 4 large Australian banks, all calling for a cut.
Not everyone is though.
Via RBC:
- It is a line ball call for the RBA at this board meeting.
- Further rate cuts are largely a matter of when, not if.
- We still think the RBA can afford to be patient, awaiting some of the more timely and policy sensitive data (including Aug retail sales later in the week) to get a better sense of the expected upturn in activity.
- These data in recent months have been mixed.
- We lean towards no cut. However, as we noted following the Governor's recent Armidale speech, the RBA often delivers what is priced by the market, especially if a cut is likely at some point before year end so a move would probably not be surprising.
