RBA seen on hold, no rate cut this year - NAB

Analysts at National Australia Bank (NAB) made changes to its RBA interest rates outlook today, removing their expectations of a 25 bps rate cut in 2017.

Key Points:

RBA becoming increasingly focused on financial stability considerations

Particularly household balance sheets ... amidst elevated levels of household debt

Recent comments from RBA officials raise the possibility that macro-prudential measures may be stepped up

Given concerns about economic growth and the labor market in 2018, NAB continues to flag the risk of further monetary policy easing at some point