According to the latest Reuters poll on economists
- First rate hike only seen in Q4 2019 - unchanged from prior survey
- 15/52 respondents see at least one rate hike by December 2019
- 22 respondents see no change by that time
- 15/48 respondents see no change in policy until March 2020
The RBA meets again next Tuesday and is very much expected to stay pat for the foreseeable future and refrain from tweaking the cash rate. With the big four banks raising their mortgage rates in the last month, it's tightening the purse strings of consumers even more considering that household debt continues to pose a problem for the economy.
Add in sluggish wage growth and it's tough to see the RBA moving any time soon from here. Q4 2019 seems to be the optimistic scenario in which the nuances in the economy fixes themselves, but if they don't then expect that baseline to be pushed further back and that will continue to weigh on the aussie next year.
