It seems that the market is now pricing in a greater liklihood of a rate rise next month but I think they’re getting it wrong.
Glenn Stevens is very hawkish anyway and if the RBA had based it’s rate decision on domestic factors last Tuesday, then they would definitely have raised rates.
It’s international factors which are deterring the RBA from hiking and while tensions and uncertainties exist and while every other currency remains in the race to the bottom, the RBA will not be in any hurry to hike. The unemployment rate remains at 5.1% and the domestic economy remains steady so the RBA should remain steady too.