The Reserve Bank of Australia cash rate announcement and Governor Lowe's statement will come at 2.30pm Sydney time (Tuesday 3 October 2017 0330 GMT)
- No change to the cash rate target is expected
- Little change is expected in the accompanying statement
- There is no press conference (there never is)
I posted 3 previews on Monday, here:
Here is another, this via RBC:
We expect the RBA to leave the cash rate unchanged for the 14th consecutive meeting.
- Since the board last met, key domestic data have been on the firmer side of expectations (labour market) with Q2 GDP printing broadly in line with the RBA's forecasts.
- While the housing data and anecdotes have softened, this is unlikely to be of much surprise to the RBA although we will be watching for any shift in rhetoric.
- They will likely retain faith in their base case assumption for growth to return to a 3% plus pace with inflation heading back into the target range. The global PMIs signal continued expansion and will likely reinforce the positive message from the RBA.
- Consistent with the above, the A$ has remained firm although off its recent highs and we would not expect the RBA's rhetoric on the currency to change.
