Forex
RBA Expected to Hold Cash Rate at 4.35% Amid Paused Economy
TD Securities expects the Reserve Bank of Australia (RBA) to hold the cash rate at 4.35% when it meets on August 11, aligning with broader market consensus.
The bank says the RBA is in a 'pause and observe mode', citing restrictive policy settings, slowing activity particularly in housing, and the lagged effects of earlier hikes still working through the economy.
A lower than expected Q2 trimmed mean CPI reading has given the RBA room to pause, with OIS markets pricing close to zero probability of a hike today.