### RBA Bank Views (2/2) - Westpac: Expect......>

RBA: ### RBA Bank Views (2/2) - Westpac: Expect the RBA to keep rates unchanged.

"Following two 25bp cuts in May and August 2016, the Bank has kept policy firmly

on hold. Minutes to the July meeting reaffirmed labour and housing markets as

particular areas of interest - key questions around both remain unresolved. A

discussion of 'neutral' rates in the 'Considerations for Policy' section of the

July minutes was seen by some as a more hawkish signal, contributing to a

firming in the AUD. The RBA Governor has publicly rejected this view,

reinforcing the Bank's 'firmly on hold' stance. Despite this the AUD has

continue to rise. How this is treated in the Governor's decision statement and

its forecasts in the Aug SoMP(due Friday) will be of interest."

- CBA: Expect the RBA on hold, say recent speeches indicate the bank in no hurry

to change policy gears. Note that "the post meeting Statement will be carefully

vetted to keep it as "neutral" as possible. One thing to watch for, though

Tuesday's is any indication on how RBA forecasts are evolving. The forecast

detail will be published on Friday in the next quarterly SoMP. But Governor Lowe

has a tendency to preview the forecasts ahead of their release."