The latest poll by Reuters show that the RBA is expected to keep its cash rate steady until early next year
The RBA meets again next week but is widely expected to keep rates unchanged, with cash rate futures also pricing in a 94% probability of no change.
The latest Reuters poll on economists shows that most (25 of 36 surveyed) are expecting the RBA to only cut rates again to 0.50% by early 2020. The median of the survey shows that economists are then expecting the cash rate to remain steady through 2021.
Given the way global trade and economic conditions have settled over the past few weeks, I reckon that's a fair take but I would argue that sentiment remains fragile.
As such, a potential hiccup in the US-China trade deal or some other major worry surfacing could easily cause the outlook to flip on its head once again.
For the RBA, expect there to be a strong debate on zero rates and QE in the year ahead.
