AUSTRALIA VIEW: *** Bank views on yesterday's RBA....>

AUSTRALIA VIEW: *** Bank views on yesterday's RBA MonPol Decision (1/2)

ANZ: The May statement is consistent with the comments in the minutes from the

April meeting. We exp. that the commentary and forecasts in the Statement on

Monetary Policy due out on Friday will continue this theme, with a relatively

upbeat growth outlook and forecasts that show gradual progress towards the

mid-point of the inflation target band.

- CBA: Nothing in the Statement alters our long held view that the RBA will

remain very tardy in lifting rates. We still see the first move not coming in

Nov 18, at the earliest. The clear risk to our view is that the RBA will wait a

bit longer if there is a lack of any hard evidence of intensifying wage or price

pressures and given widespread evidence of moderating national house prices.

- RBC: Although the statement retained positive forward-looking commentary, the

recent weakening was acknowledged which may be a prelude to a downgrade for

nearer-term forecasts on Friday. While we don't envisage a hard landing, the

impetus to hike remains a while off, and we remain of the view that the RBA will

keep the cash rate steady until '19.