RBA Policy is seen on hold at today's MonPol....>

RBA: RBA Policy is seen on hold at today's MonPol decision, although there is

the possibility that the Bank may alter its rhetoric.

- The Reserve Bank of Australia's cash rate statement on Tuesday is likely to

repeat the cautious language around household income and high debt levels, but

the overall tone may tilt further towards the hawkish side.

- One possible indication of a more hawkish shift could be the inclusion of

forward guidance in the cash rate statement. Earlier this month, the RBA

surprised with the inclusion of the line "it was more likely that the next move

in the cash rate would be up, rather than down" in the minutes of the April

board meeting. Governor Philip Lowe had publically stated that a few times in

the past, but it was the first occasion the RBA included it in its

communication, and it was done with the aim of improving communication. There is

a possibility the RBA could now include the line in the cash rate statement and

while it may just be a reiteration of past view, it would still be a signal of

further hawkish shift.

- MNI - For Full Story See Main Wire At 09:57 BST 04/30.