RBA Seen ‘On Hold’ Tomorrow – TDS
Strategists at TD Securities expect the RBA to keeps its monetary policy unchanged at its meeting tomorrow, at 1.75%.
“We expect the RBA to hold at 1.75% after hawkish May Minutes and a string of decent data”.
“However, with weak price pressures the main game, the RBA is not finished and we expect a clear easing bias to be reintroduced along the lines of “continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand”.
“The AUD between $US0.70-73 is consistent with the RBA’s soft target of “in the low 70s” as that level is more supportive for growth”.