RBA to keep rates on hold on Tuesday – Capital Economics
Analysts at Capital Economics believe that the Reserve Bank of Australia (RBA) will keep the Official Cash Rate (OCR) unchanged at a record low of 1.50% on Tuesday, April 2nd.
Key Quotes:
“RBA will welcome the continued tightening of the labor market … unemployment dipped to an eight-year low of 4.9% in February.
We suspect the unemployment rate will creep up before long.
There are already signs the labour market has started to slacken: ANZ job ads have been falling for several months and employment growth has been slowing for nearly year.
We have become even more concerned about the economic outlook and lowered our forecast for GDP growth in 2019 from 2.0% to 1.5%. If we are right, GDP growth will be suggest the RBA may have to move earlier than expected and we have brought forward our forecast for the first rate cut from November to August. What's more, we think the RBA will move faster and cut rates again in November and February.”