RBA likely to highlight its reluctance to cut - TDS

Research Team at TDS, suggests that tomorrow we have RBA meet.

Key Quotes

“We expect the Bank to again highlight its reluctance to cut, where RBA Edey well summed up current thinking, stating last week that there was little to go on to trigger a reassessment of the global outlook.

Those looking for a shift towards a more dovish stance or outright AUD jawboning will be disappointed, hence AUD and bond yields could be higher after the event. Q1 CPI on April 27 offers scope for the market to price in a greater chance of H2 RBA cut.”