Reserve Bank of Australia Board meet Tuesday 2 April 2019, result announced at 0330GMT
The Bank switched to an easing bias a month ago, and while it seems a little early to be looking for a rate cut, especially with the latest headline unemployment figure coming in since at 4.9%, each meeting is 'live'.
Some quick comments via ANZ an what to expect:
- We expect no change to RBA policy as the labour market remains strong. The tone will likely remain cautious, however, owing to risks associated with housing, credit conditions and labour market expectations. Risks remain balanced as strong unemployment data have been offset by the weaker 4Q GDP and soft leading indicators
Also from ANZ (this from senior economist Cherelle Murphy, not specifically on the meeting next week):
- The government will be tempted to find vote-winning measures ahead of the coming election, given receipts are growing more strongly than expected
- The RBA is likely to welcome income tax cuts, preferring this stimulus over a lower cash rate, which would not address household's credit supply constraints
