Citi expect an RBA cut in August, Morgan Stanley the same
Westpac have a long-time August rate cut from the RBA too.
But, an overnight note from MS, citing yesterday's wages data:
- Wage inflation was flat at 2.3%Y for 1Q19
- There are still some signs of wages pressure, particularly in the private sector but these are contingent on further improvement in the labour market to continue.
- We remain cautious on this front, and expect the RBA to cut rates in August.
The wages data is here ICYMI:
Earlier Citi call is here:
- Australian labour market report due Thursday 16 May 2019 at 0130GMT - preview
- Australian labour market report due Thursday 16 May 2019 - preview
ps. MS are August and November for their call.