Announcement and statement from Governor Lowe are due at 0330 GMT.
No change in policy is expected. What will be watched for is changes of nuance in Lowe's statement regarding the expected timetable for policy tightening.
A couple of snip[pets from bank analyst previews:
NAB:
- The RBA’s March meeting is unlikely to break from the RBA’s February talking points. Data since the February meeting will do nothing to challenge the RBA from its framing, and the RBA is likely to stick to its messaging that it is “prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve.”.
Westpac:
- The RBA will keep rates on hold at their March meeting; focus will be centred on any shift in rhetoric concerning the timing of the tightening cycle, which Westpac expects to begin in August 2022.
ASB:
- We do not expect any change to policy at the RBA Board meeting in March. There has been some slight change in language by the RBA since the February meeting, noting rate hikes are plausible in 2022 and they would like to see a couple more CPI prints. Of most interest will be the RBA’s reaction to the Q4 21 WPI print of 0.7%.
BNZ:
- The RBA’s policy update is a dead-rubber, with the Bank awaiting further CPI and wages data and being “patient” with its on-hold policy view in the meantime.
RBA Governor Lowe:
