Paul Brennan is chief economist at Citi, comments on the Reserve Bank of Australia meeting due this week
- Says the decision for the RBA is a 'no-brainer'
- Monetary policy is currently sandwiched between low (below target) underlying inflation & reaccelerating house prices
- On house price growth, Brennan says more APRA initiatives should be coming down the track
(Brennan referring to Friday's tightening of macro prudential measures by the Australian Prudential Regulation Authority last week - post here for detail on these)
- Says the May meeting might be more interesting, it is 'somewhat live', citing for focus on Q1 inflation data (due on April 26)
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- The RBA announcement and accompanying statement will be out at 2.30pm local time on Tuesday 4 April 2017
- (0430GMT on Tuesday 4 April 2017)
- Cash rate is currently 1.5%
- RBA Governor Philip Lowe will speak on Tuesday evening (7.15pm local time, 0915GMT))
Following the Tuesday meeting we get the latest Financial Stability Review (April 13), There will be a focus on amount of debt held by Australian households, their ability to re-pay it and the risks it poses. Governor Lowe has been vocal on the negative impact high debt is having on consumer discretionary spending.
