RBA kept its rates unchanged once again – UOB
Researchers at UOB Group assessed the recent decision by the RBA, leaving its key rate unchanged for the 22nd consecutive meeting.
Key Quotes
“As expected, the Reserve Bank of Australia (RBA) held its official cash rate (OCR) at 1.5% for a record 22nd meeting”.
“We remain of the view that the RBA is in no hurry. Overnight index swaps (OIS) and consensus sees no meaningful chance of a rate hike until one year out, reinforcing our view that the RBA will refrain from raising rates (possibly until at least the second half of 2019) unless they see wages rising substantially above inflation. In addition, intensifying trade rhetoric between the US and China and new trade tariffs could slow down the Chinese economy – a key trade partner of Australia and the largest buyer of the country’s natural resources. Surely, the RBA is assessing these risks before making any adjustments to its monetary policy”.