The first Reserve Bank of Australia monetary policy meeting for 2020 is due on Tuesday 4 Feb

Earlier:

A few points from ANZ's preview:

  • We think the RBA will frame its thinking around an outlook for the global and domestic economy that shows some promising signs, a "gentle turn" (to steal the RBA's phrase from last year), but with considerable downside risks from the bushfires, coronavirus and other factors such as soft consumer spending and high debt levels.
  • With its cash rate close to the stated lower bound of 0.25%, we think the RBA will take the opportunity provided by strong employment data to keep the cash rate as is and wait for further information about the state of the domestic and global economies.
  • In effect, while we think the RBA's forecasts will justify a rate cut, we expect it hold until it is more certain of the outlook. This is what it did after the May and August SoMPs last year.
The first Reserve Bank of Australia monetary policy meeting for 2020 is due on Tuesday 4 Feb