BNP expect no change in Reserve Bank of Australia monetary policy settings this year

The Bank to remain on hold through 2018

  • BNP still see risks for a weakening economy from slow consumption, low wage growth and low inflation
  • But upside risks on business confidence, falling unemployment

BNP expect a gradual inflation rise in 2018.

Also expect further Federal Reserve rate hikes.

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On the AUD - see a modest decine