### Bank views (2/3)- CBA: The cash rate........>

RBA: ### Bank views (2/3)- CBA: The cash rate should remain firmly fixed at the

record low of 1.5%. The Board discussion will no doubt include: the recent

upward revision to global growth forecasts; the stimulus from the Trump tax

package; resilience of key commodity prices; the surprising strength in the AUD

(or should it be surprising weakness in the USD?); the turn towards rate rises

in some major central banks (which the RBA was quick to emphasise has no

automatic implications for monetary settings in Australia); the tendency for

recent Australian data to surprise on the upside.

- SocGen: Contained inflation and a relatively strong exchange rate suggest that

there is little reason for the RBA to adjust the exceptionally accommodative

policy stance in the near future. However, with prospects of solid growth at

home and abroad - and an exceptionally strong labour market - the case for

maintaining a policy rate that is negative in real terms is becoming

progressively weaker. We therefore maintain the view that by the second half of

next year the RBA too will begin to normalise its policy stance.