The analysts of TD Securities they believe the Reserve Bank of Australia (RBA) will keep its policy rate unchanged after the September policy meeting.
Governor Philip Lowe’s last meeting at the RBA
We expect the RBA to leave the cash rate unchanged at 4.1% (matching consensus) at the September meeting following the encouraging CPI reading for July. The economic data has not given much impetus to the RBA to resume its cycle of increases, since the entity has gone into a phase of adjustment in this cycle, emphasizing that the Council will make the decision month by month based on the data that goes arriving.
“July CPI inflation continued to slow to 4.8% yoy, while the loss of 14,600 jobs in July reinforces the idea of a further pause by the RBA. Therefore, we doubt there will be a clear change to the RBA’s message at the September meeting and we hope that Governor Philip Lowe’s last meeting goes without much fanfare.”
Source: Fx Street
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