VIEWS: Bank Desk Views On Today's RBA MonPol....>

RBA: VIEWS: Bank Desk Views On Today's RBA MonPol Decision

- ANZ: Since the RBA's Nov statement the housing related data has been weak,

wages have been in line with exp., while employment & forward exp. for capex

have been solid. Global news has been -ve, including wider credit spreads &

lower oil prices. Together these won't be enough to shift the RBA from its

positive outlook, but may see some caution enter the Bank's commentary.

- Credit Ag: There RBA is widely exp. to leave rates on hold & has little reason

to sig change its optimistic view on the economy, while also maintaining that

there are no compelling reasons for a near-term adjustment in rates.

- Westpac: The RBA will leave interest rates unch. We continue to exp. rates to

be on hold throughout '19 & '20. Notably, the correction in the housing market

is occurring against the backdrop of a robust economy. Growth has been above

trend and unemployment has fallen to a six year low. The RBA exp. further, but

only gradual, progress in reducing unemployment & returning inflation towards

the middle of the target band. A lift in wages growth, from the current sluggish

pace, will be key to achieving a sustained lift in inflation.