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### POV No Change At The RBA, Eyes On...........>

RBA
MNI (London)
RBA: ### POV No Change At The RBA, Eyes On Forecasts
- The RBA is set to leave its cash rate unch at 1.50% on Tues. Focus will
quickly turn to the statement, with the Bank set to make inference regarding its
upcoming econ projections, due Friday. Housing/consumer activity will be eyed.
- Q3 CPI won't alter the RBA's view, as it had previously flagged the impact of
one off drags on inflation in Q3, with the core measures meeting the Bank's exp.
- Comments regarding the labour mkt will provide more interest after the
unemployment rate fell to 5.0%, although the move was driven by a fall in the
participation rate. RBA Dep. Gov. Debelle spoke before the print, suggesting
unemp may fall further than it has done in previous instances before wages pick
up. It is worth noting that the unemp rate has now reached a level that the RBA
was expecting it to hit in late '20, although this was also covered by Debelle,
as he noted that unemp may decline at a faster rate than the Bank expects.
- The move is unlikely to alter the trajectory of MonPol, but any tweaks around
language regarding jobs will be of interest. That being said, excluding a move
in wages/infln, the print will likely do little for the RBA in isolation.
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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