RBA likely to maintain status quo in March – Natixis

Kohei Iwahara, Research Analyst at Natixis, expects that the Reserve Bank of Australia (RBA) is likely to remain on hold at the March meeting.

Key Quotes

“While economic transition away from the mining sector continues to linger, the Australian economy avoided a technical recession once again in Q4-16, with a resilient private domestic demand. Furthermore, as the Fed normalizes, the Aussie is anticipated to reverse the recent appreciation trend, lifting inflation which has been below the RBA’s target range. Therefore, with a higher confidence on the economic outlook, the RBA is expected to save ammunition with the cash rate at the historical low level of 1.50%.”