RBA: Expect a reasonably positive tone – RBC CM

Analysts at RBC Capital Markets explain that the RBA is due tonight and data since the last meeting are unlikely to shift the RBA’s assessment that growth will strengthen and inflation will eventually head back within target.

Key Quotes

“We expect a reasonably positive tone to the statement which may be tempered by acknowledging some softening in housing indicators and the likelihood of a soft Q1 GDP print due the next day. All up, however, a neutral bias and consistent with an RBA on hold. Q1 GDP is due on Wed; still to come are further partials (BoP tonight).”