RBA values unchanged, rate son hold for 2018 and 2019 - Nomura

Analysts at Westpac argue that, overall, the RBA’s core views are unchanged. 

Key Quotes:

"The Bank continues to expect a lift in growth and inflation over coming years and, with the improvement expected to be gradual. 

However, there is a clear signal that it is prepared to be patient in assessing how conditions are evolving. 

This, and the emphasis on slow moving quarterly updates on wages, points to the likelihood that policy will remain on hold throughout 2018. 

Westpac continues to see a more challenging year ahead for the Australian consumer and another sub-par year for wider economic growth. 

While there will be some improvement in incomes and wages growth, we expect it to be only slight. 

More importantly, we also expect consumer spending to again disappoint, falling well short of the RBA’s anticipated return to 3% growth. 

Accordingly, we see official rates staying on hold throughout both 2018 and 2019."