### Bank views (3/3) - HSBC: See the RBA on.....>

RBA: ### Bank views (3/3) - HSBC: See the RBA on hold and unlikely to change its

domestic forecasts. The tone of the RBA's approach is likely to be similar to

that conveyed by the Governor in a speech in November 2017 when he stated that

if the economy continues to improve as expected, next rate move more likely up,

but no need for adjustment at the moment. On the downside, the RBA is expected

to point out that the recent lift in the AUD may be somewhat unhelpful for the

growth and inflation outlook, although we do not think it will tangibly affect

the RBA's central forecasts. Cooling housing market may allow the RBA to be even

more patient about lifting its cash rate.

- Westpac: We expect the RBA to leave rates unchanged at its Feb meeting.

Developments over the summer hiatus have been mixed with the Q3 national

accounts disappointing but more positive news around global conditions, labour

markets and confidence. Inflation remains subdued. There is also no new

information around the Bank's key areas of uncertainty - the impact of

lacklustre consumer demand, household debt and weak wages. We expect consumer

weakness to persist, leading the RBA to again leave rates on hold all year.