RBA to hold rates, August cut expected - TDS

The Research Team at TDS notes that while the RBA is expected to hold rates unchanged today, they still look for an August cut to 1.5%.

Key Quotes

RBA reminded us last week that it was upbeat, citing that low interest rates and the weaker AUD were supporting growth.

Post Brexit vote, our new views on the global economy are (1) delayed Fed tightening into mid 2017 and (2) BoE slashing by 50bp by August.

The fresh global downdraft could see the RBA reintroduce an explicit easing bias, citing offshore risks, but is far from a done deal.

We still look for an August cut to 1.5%.