As 'risk' continues to give a bad smell a look ahead to the Reserve Bank of Australia later today, 0430 GMT on Tuesday
Earlier preview here:
A few snippets from about the place:
Citi:
- The RBA has cut the policy rate at their last two meetings, bringing it down 50bps to 1%.
- expect them to pause until November, as they assess the impact of easing on the economy
- (ps. Citi tech analysts have cut long AUD/NZD - citing deteriorating risk environment)
Scotia:
- cash rate target is expected to be left unchanged at 1%
- risk to this view is whether the market response to the recent deterioration in US-China trade negotiations merits an insurance cut
- The rise in Q2 inflation... provide no great sense of urgency to ease so soon after back to back cuts
Daiwa:
- Having cut the cash rate by 25bps a piece in the previous two meetings, the RBA is widely expected to be kept policy on hold is expected.
- But attention will be on the accompanying policy statement, Governor Lowe's press conference and Friday's publication of the central bank's quarterly Monetary Policy Statement for any guidance to the near-term policy outlook.
(ps. There is no press conference, Daiwa is likely referring to Lowe's appearance in parliament coming up on Friday, Australia time. The SoMP is also on Friday - see the preview linked above for more on these)
