RBA preview - will not cut "because the labour market is still in good shape"

Reserve Bank of Australia monetary policy decision and Governor Lowe's statement are due at 0430GMT May 7 2019.

Earlier:

• preview of the RBA monetary policy decision due 7 May
• RBA preview - markets have a 50/50 split on these two options
• RBA monetary policy decision on Tuesday, RBNZ on Wednesday - what to expect
• Westpac sees asymmetric risk for the Australian dollar on the RBA
• Morgan Stanley like the AUD, say no RBA rate cut next week
• AUD: Beset by weak domestic data, calls for imminent RBA rate cuts ... buy it anyway!
• Eight reasons why the RBA will cut rates this week
• Westpac says the case 'indisputable' for an RBA rate cut ... but not in May
• AUD - NAB CEO has dismissed calls for an RBA interest rate cut

Quick thoughts here from CBA:

• Expectations for a cash rate cut increased following the weak Q1 inflation outcome.
• We think the RBA will keep the cash rate at 1.5% because the labour market is still in good shape. However we think that the weak inflation data means that there is a risk that the RBA will moves to an explicit easing bias.

CBA add on Friday's Statement on Monerary Policy (due 0130GMT on Friday 10 May):

• It's not always possible to determine the RBA's bias from the post-meeting Statement. As a result we may need to wait until the SMP on Friday to get a true indication of the RBA's stance.

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ps. A few people asking about the expected AUD response to today's decision.

FWIW, my 2 cents (Australian cents so bear that in mind):

• If the RBA cut AUD to drop and quickly encounter buyers (market is well short, this is not a mystery)
• If no cut, AUD to be marked higher immediately (ditto on reasoning).