The bottom line from Westpac on the Reserve Bank of Australia minutes is there is nothing in them to dissuade the bank for their view that the cash rate will be on hold in 2019 and 2020
Citing, in summary:
a balanced set of minutes
indicate more confidence from the Board around its growth, employment, wages and inflation views
outlook was also boosted by the expectation that consumption and income growth will hold at 3% despite slowing employment growth, and risks around the housing market in Sydney and Melbourne.
… Westpac expects that their growth forecast for 3 ¼ per cent growth in 2019 is too high, mainly because of an expected downturn in residential construction, a slowdown in consumption growth associated with weaker income growth and some wealth effects. That development alone is likely to take the edge off the expectation of rising wages and higher inflation.
