### (1/2) The Reserve Bank of Australia is......>

RBA: ### (1/2) The Reserve Bank of Australia is widely expected to leave the

cash rate unchanged at 1.5% Tuesday and maintain an overall neutral tone. But

there could be shift in language on the exchange rate that may pose downside

risk for the Australian dollar. Following is a summary of bank views:

- TD Securities: Predict a 99.9% probability of the RBA being on hold. "After

another neutral carbon copy statement of recent months was followed by a more

upbeat set of Minutes, markets could be looking for more hawkish tweaks. We

expect another carbon copy, only adding comments about the outlook as the Board

will have a draft of the SoMP projections."

- ANZ: Expect the RBA to be on hold, expect the RBA to remain optimistic in its

outlook for the economy, notwithstanding the impact of the higher AUD. We see

the RBA's growth forecast for 2018/19 being revised down slightly to 2.5-3.5%.

- Barclays: If the trend of improvement in the labour market continues and wages

start to rise at the margin, then this may create conditions for the RBA to

normalise policy, but not before those trends are firmly established. We expect

RBA to stay on hold this year.