CBA response (in very brief):

  • The RBA Minutes indicate the Board is comfortable with developments on the activrty side of the domestic economy.
  • However the Minutes also suggest lingering uncertainty on the outlook for higher wages and inflation.
  • As a result the Minutes imply that a rate rise looks some way off.
  • Market pricing implies a 50% chance of an RBA cash rate increase over the next year.
  • We expect the cash rate to stay on hold until late 2018 but with a risk to a later lift-of depending on the evolution of inflation and wages.


Later ....