RBA to hold rates unchanged at their September meeting - Westpac

In the view of analysts at Westpac, the Reserve Bank of Australia (RBA) is expected to keep the Official Cash Rate (OCR) unchanged at its monetary policy meeting due today at 0430 GMT.

Key Quotes:

“The RBA will hold rates unchanged at their September meeting, as they have since they last cut rates in August 2016. The Governor's decision statement will repeat the line that: "further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual".

Economic growth over the past year was above trend, at 3.1%; inflation is in the target band, at 2.1%; and unemployment has declined to a six-year low, 5.3%. 

However, uncertainties and challenges remain, notably around the consumer, weak wages growth, high household debt levels and housing, as prices ease little following strong gains and as lending conditions tighten. 

We expect the RBA cash rate to remain unchanged at 1.50% throughout 2018 and 2019, and now as well during 2020.”