This will likely be Philip Lowe’s final assembly as RBA governor, earlier than formally handing over the reigns to Michele Bullock. As such, do not count on a lot fireworks – particularly since there hasn’t been a lot developments because the 1 August choice right here.
The percentages of there being no change to the money fee as we speak is at ~95%, so this must be fairly an easy one. I might count on the language within the assertion to stay roughly the identical because it was a month in the past with the RBA noting that “some additional tightening of financial coverage could also be required” and that they want extra time to evaluate financial circumstances.
When it comes to the pricing outlook for the RBA, merchants will not be seeing any extra fee hikes with the height fee priced in being at 4.16%. Basically, markets are simply ready for the second when the RBA will pivot in the direction of a softer stance of their ahead steerage to begin pricing in fee cuts extra aggressively.
The Australian greenback itself ought to see a fairly muted response as we speak, as long as the RBA sticks to the script.
