RBA monetary policy preview – NAB

The National Australia Bank (NAB) provides a quick preview of what to expect from the Reserve Bank of Australia (RBA) monetary policy meeting scheduled next week.

Key Quotes:

“The RBA is becoming increasingly focused on financial stability considerations, particularly household balance sheets in the context of a re-acceleration in house price growth in Sydney and Melbourne amidst elevated levels of household debt.“

“Recent comments from RBA officials raise the possibility that macro-prudential measures may be stepped up and we now consider a further rate cut as unlikely in this environment.”

“We have removed our expectation of a 25bp rate cut in late 017, although continue to flag the risk of further monetary policy easing at some point given our concerns about economic growth and the labour market in 2018.“