RBA forecast for 2018 - Capital Economics

FXStreet Team FXStreet

Capital Economics provided a lengthy analysis of what their expectations are for the Reserve Bank of Australia and their interest rate policy for 2018. The critical takeaways and key points are provided below.

Quotes:

Despite the strengthening of the activity data, the Reserve Bank of Australia won't raise interest rates from 1.5% at the meeting on Tuesday 6th February and probably won't hint in the following Friday's Statement on Monetary Policy that rate hikes are just around the corner either.
The rising Australian dollar has already tightened financial conditions and the outlook for inflation is still weak.
Our money is on the RBA leaving interest rates at 1.5% at all eleven policy meetings this year.

Governor of the RBA Philip Lowe will be speaking at the A50 Australian Economic Forum dinner on Thursday, February 8th, and the RBA publishes their first Statement of Monetary Policy for the year the day after, on Friday the 9th.

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