RBA remains cautiously steady – UOB

Economist at UOB Group Lee Sue Ann assessed the recent decision of the RBA to leave the key interest rate unchanged.

Key Quotes

“The Reserve Bank of Australia (RBA) kept its official cash rate (OCR) on hold at 1.00%, as expected”.

“By November, the RBA will have received more data on inflation, as well as further

labour market information. But for now, there are good reasons for the RBA to remain on a “wait-and-see” approach, especially since the OCR is already at a historic low of 1.00%”.

“Our current forecast is for a steady OCR of 1.00% for the rest of this year. We will, however, keep watch on global trade tensions, soft consumer spending, undershooting inflation, and mediocre wages, which will be factors that may prompt us to revise our view further ahead”.