RBA to remain on hold at 1.50% in coming quarters - HSBC

Paul Bloxham, Chief Economist at HSBC Bank Australia limited, produces the review of the RBA’s latest monetary policy decision announced earlier on the day, which was the first decision by the new Governor Phil Lowe.

Key Quotes:

“'If it ain't broke, don't fix it', as the idiom says. Today's statement from the newly appointed RBA governor (and previous deputy governor) Phil Lowe, epitomizes the essence of this expression. The handover has been a picture of continuity.”

“Today's announcement was the latest iteration of this continuity theme, with the cash rate held steady at 1.50% and only small adjustments to the post-meeting statement.”

“The main message was repeated from last month, that having just cut in May and August, the board judged that holding steady was appropriate.”

“On the AUD, the statement repeated that 'an appreciating exchange rate' could complicate the rebalancing of growth.”

“On housing, they noted that although housing price growth has slowed relative to a year ago, some markets have strengthened recently.“

“Our central case has the RBA on hold at 1.50% in coming quarters.”