RBA decision due Tuesday, 7 May 2024 at 2.30 pm Sydney time – hawkish hold?

The Reserve Bank of Australia statement is due at 0430 GMT, 0030 US Eastern time.

Earlier previews:

• RBA meeting – preview – Cash rate to remain unchanged
• Central banks are still on the agenda this week
• Australia- inflation a bit higher than expected, RBA on hold

Outlier call for a rate hike:

• Capital Economics are forecasting a Reserve Bank of Australia rate hike
• RBA meet this week – “History suggests a rate increase is plausible”

This snippet from Westpac:

• The RBA is widely expected to keep policy on hold today
• Given the slower progress on disinflation evidenced by Q1 CPI, the Board’s language may be more hawkish

And this from Commonwealth Bank of Australia:

• The RBA Board may restore its hiking bias at the upcoming May Board meeting.
• But on balance we expect an ‘on hold’ decision to be accompanied by a neutral bias, in line with the policy decision and Statement from the March Board meeting

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RBA cash rate compared to Australia’s inflation rate:

This article was written by Eamonn Sheridan at www.forexlive.com.