The RBA announcement is coming up at 2.30pm Sydney time, which is 0430 GMT and 0030 US Eastern time.
Earlier previews are here:
TD are looking for a rate hike:
- Another line-ball call with consensus expecting no hike and OIS market pricing in an approximate 50% prob of a 25 bps hike.
- Contrary to consensus, we expect the RBA to hike.
- The labour market is too tight, upside retail sales beat for May, rebound in domestic housing prices in June and elevated household savings provides room for the RBA to continue its hike to return inflation back to target.
On the other hand, Societe Generale expect the RBA to maintain its cash rate target of 4.10%
- in our view, it would be difficult for policymakers to implement such a rate hike for three months in a row following the significant decline in monthly inflation in May.
- We maintain our base-case scenario, in which we assume a terminal policy rate of 4.35%, under the assumption that the RBA will opt to ‘pause’ with no meaningful changes in policy statement in July.
- The likelihood of the terminal rate being higher than 4.35% would increase in the event of a rate hike and/or hawkish changes in the policy statement.
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Currently: