The Reserve Bank of Australia meeting will be a ‘no change’ one, with probably little change in outlook from the Lowe Statement either.
- Cash rate to remain at record low 0.1%
- A decision on any changes to the bank’s QE program is not expected until the July meeting, so no change on that front either
ANZ expectations, in very brief:
- Careful communication will be crucial
- it will be difficult for the RBA to appear as hawkish as the RBNZ, because it does not publish its expected policy rate track
I’d go Further and suggest the RBA does not have the reasons to sound more hawkish at this stage, they are still well, well short of hitting Their twin goals (inflation 2-3%, full employment)