VIEW: On Wednesday TD Securities altered........>

RBA: VIEW: On Wednesday TD Securities altered their call for cash rate hike in

May 2019, noting that "with wages growth picking up, we remain of the view that

interest rates can be lifted off the floor in due course. However, as the

glacial pick-up continues, the RBA is expected to remain patient for longer. The

RBA needs higher wage growth so households can manage higher interest rates,

even if the tightening cycle is likely to be very modest by historical

standards. In addition, higher income growth provides a valuable offset to

declining asset prices, i.e. the housing and equity market correction that is

currently underway. The Dec qtr WPI report is released 15 February 2019, and the

Mar qtr report isn't released until after the 7 May RBA meeting and 10 May

Monetary Policy statement (on 15 May 2019). This implies that even if we are

right and wages growth is closer to 2.5%/y Q1 2019, then August is the first

opportunity to respond to wages growth closer to 'target'." Their new call looks

for a 25bp hike in November 2019.