RBA: first rate hike to come in Q1 2019? - Nomura

Analysts at Nomura explained that the Reserve Bank of Australia (RBA) left its cash rate at 1.50% as was uniformly expected. 

Key Quotes:

"The press release repeated key messages and did not indicate any material shift in thinking. Rates bears could point to the addition of a new phrase, that “the rate of wage growth appears to have troughed”, although bulls could note a more emphatic comment that “the housing markets in Sydney and Melbourne have slowed”. 

Overall, the press release suggests that, with the passage of time, the RBA still believes it is on track towards meeting its inflation and employment objectives. We remain on the lookout for any shift in tone over coming months, which we believe will most likely be in a hawkish direction. Our base case remains for a first rate hike in Q1 2019, although we still see risks tilted towards an earlier move."