RBA to remain on hold at its meeting next week, but its just a pause in the cycle of cutting the cash rate further

A preview of the Reserve Bank of Australia monetary policy meeting coming up on September 3.

The headline to this post is the gist of the analysis via Capital Economics:

• The Reserve Bank of Australia hasn't learned much on the state of the economy since its last meeting and we expect it to leave rates unchanged at its next meeting on Tuesday
• However, we still expect the labour market to worsen further which should eventually prompt the Bank to slash rates to 0.5%

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RBA meet Tuesday Sep 3

• announcement at 0430GMT
• accompanied by Governor Lowe's Statement
• pricing is around a 12% probability for a rate cut at this meeting (and around 64% for an October cut)