The Reserve Bank of Australia statement is due at 2.30pm Sydney time:

  • 0330 GMT, 2330 US Eastern time

Westpac expects:

  • We retain our call that RBA will remain on hold until next August when the first rate cut can be expected
  • We are certain that the Board will decide to continue the pause that began at the July meeting. The Board meetings which occur immediately before the release of the quarterly Inflation Report and the updating of the staff’s forecasts (namely those in April, July and October) have been ones where the Board has shown a preference to pause – even during this long tightening cycle.
  • At the October meeting last year, there was a surprise slowing in the pace of tightening from 50bps to 25bps; in January this year there was no meeting; April saw the first pause in the cycle after consecutive hikes in February and March; and July saw a pause after consecutive hikes in May and June.

The Reserve Bank of Australia is widely expected to hold the cash rate unchanged and sound a hawkish tone.

Further ahead:

rba cash and inflation rates 29 September 2023

The cash rate target is to remain at 4.1% today.