RBA to keep the cash rate on hold - TDS

Prashant Newnaha, Senior Asia-Pacific Rates Strategist at TD Securities suggest that TD and markets expect the RBA to keep the cash rate at 1.5% tomorrow.

Key Quotes

“We anticipate the Bank to remain upbeat, but maintain its neutral policy outlook.”

“Growth has been firmer, u/e lower and core inflation has eased to 1¾%/y as expected since the Aug SoMP. The only change we see the Bank making is dropping the Dec'18 u/e from 5.50% to 5.25% and there is a chance the return to 5% unemployment is brought forward by 6 months. Other longer term forecasts should remain unchanged, consistent with a neutral policy bias.”