RBA to stand pat next Tuesday – Reuters poll

According to the latest Reuters poll, the Reserve Bank of Australia (RBA) is seen standing pat on its Official Cash Rate (OCR) when it meets next Tuesday.

Key Findings:

“A majority of the 36 economists surveyed expect the Reserve Bank of Australia (RBA) to keep its benchmark rate at 0.75% at its Nov. 5 policy review.

As many as 25 of 36, or nearly 70%, forecast rates at 0.5% by early 2020 with four predicting deeper cuts to 0.25%.

A median of 24 respondents expects the cash rate will remain at 0.5% through end-2021.

Economists' predictions align with market pricing which shows little chance of a move in November. Futures are predicting a 60% chance of a cut to 0.50% in March.

Ahead of the RBA's decision, retail sales on Monday is likely to show a decent monthly rise of 0.5% following a below-forecast 0.4% gain the previous month.”