The RBA are universally expected to hold rates at 1.50 percent today, but themarket will look for any changes in tone to acknowledge developments since theAugust statement. The RBA will likely continue to signal rates will be on holdfor the foreseeable future, but there is speculation of a possible dovish tiltafter Westpac raised their home loan rate last week, while global trade tensionshave heated up since they last met. The RBA might acknowledge these developmentsas a matter of fact, but we don't believe they will use them to hint at, orjustify a change in bias. The RBA have clearly stated rates will remain on holdindefinitely and the next move will likely be higher. But they have not used thestatements to opine on which direction the next move will be. RBA GovernorLowe's remarks at a dinner later today may provide more information on changesto the balance of risks that have occurred in the past month. The statement willlikely remain balanced - upbeat on most aspects of the economy, while showingconcern over the high levels of household debt and stubbornly low wageinflation.
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