RBA now seen holding cash rate unchanged at 1.50% through early 2021 - poll
According to the latest Reuters poll of economists
- 41/41 economists see cash rate held unchanged this year at 1.50%
- 28/41 (Median) economists see cash rate unchanged at least until Q1 2021
- 10/37 economists expect one rate cut by the end of next year (previously 7)
More and more market participants are growing increasingly bearish on the RBA, particularly after they signaled that the probability of a rate hike and rate cut are more balanced currently.
If you want some background on the challenges the RBA is facing, you can refer to this post here from last year. Just add a softening housing market and the US-China trade dispute (slowing global economy as well) to that and you have a summary of what's limiting the central bank's ability to tighten monetary policy.