Here's a preview of what to expect from the Reserve Bank of Australia from Paul Bloxham of HSBC in Sydney
Its via MacroBusiness.
Three key things have happened in the past month that mean the RBA may, be forced to cut:
- Australia's four major banks lifted their mortgage rates ... This, alone, was unlikely to see the RBA consider cutting its cash rate, given concerns about exuberance in the housing market, but it has led to tighter local financial conditions, which may not be desirable at this point in the cycle
- Underlying inflation measures surprised to the downside ... missing the RBA forecast
- The US numbers have been weaker recently, which has seen market pricing suggest that the Fed may not lift its policy rate this year, which is a possible upside risk for the AUD
