3 May 2016
RBA to leave rates unchanged today - ANZ
Felicity Emmett, Head of Australian Economics at ANZ, thinks that the RBA will leave rates unchanged today given the healthy outlook on economic activity and employment figures.
Key Quotes
The weak Q1 CPI report has prompted speculation of a cut at this week’s RBA Board meeting.
While inflation is likely to remain outside the Bank’s 2-3% target band for some time, we think the RBA will leave rates unchanged given the current robust tone to economic activity and labour market data.
Moreover, given the global pressures on inflation it is unclear that a lower RBA cash rate will achieve higher inflation.
Key Quotes
The weak Q1 CPI report has prompted speculation of a cut at this week’s RBA Board meeting.
While inflation is likely to remain outside the Bank’s 2-3% target band for some time, we think the RBA will leave rates unchanged given the current robust tone to economic activity and labour market data.
Moreover, given the global pressures on inflation it is unclear that a lower RBA cash rate will achieve higher inflation.