RBA expected to remain ‘on hold’ on Tuesday – UOB

Lee Sue Ann, Economist at UOB Group, sees the RBA sticking to the current monetary stance at the upcoming meeting.

Key Quotes

“We think the combination of the latest 4Q19 inflation report as well as the stronger-than-expected labour market data for December, will be sufficient to keep the RBA on hold in February. That said, there are headwinds from the bushfires, drought, and downturn in residential construction activity, as well as the ongoing coronavirus. As such, we are not ruling out further policy stimulus, both monetary and fiscal.”