It is unanimously expected amongst surveyed economists that the RBA is to leave rates on hold at today’s meeting
But, it does seem likely that there will be changes to its communications in the accompanying statement
- Recent RBA minutes have sounded a slightly more cautious tone
- Earlier in the year, the minutes had been relatively upbeat for the economic outlook
- But there is now scope for a shift to a less optimistic tone
- On the exchange rate, though, it is not likely they will harden their rhetoric, expect a repeat of something like the AUD is ‘historically high’, with respect to the terms of trade falling and so on
Earlier preview of the RBA here (with a really cool pic of Glenn Stevens):
