Market unanimously expects the RBA to be on hold - NAB

Analysts at National Bank of Australia (NAB) are out with their thoughts on the RBA monetary policy outcome due tomorrow, with wide expectations that the Aus central bank will maintain the status-quo.

Key Quotes:

“The market unanimously expects the RBA to be on hold. However, recent strength in the labour market has also seen the market reassess its expectations for the cash rate and is now fully pricing an RBA rate hike by August 2018.

NAB is similar and is expecting two rate hikes in 2018 - one in August and one in November.

Expects this same positivity to be reflected in the post-meeting Statement, driven yet again by another stellar jobs print of 54k in August against expectations of 20k.

Governor Lowe's recent speech played up this positivity, stating the economy was "on course".

However, the speech also downplayed the likelihood of a near-term rate hike, with Governor Lowe stating "not for some time".

Other data out during the period included Q2 GDP figures which were mostly as expected - one weak point though was wages growth.

We expect the language around the dollar to be unchanged.”