RBA to Hold Rates Steady as Slowing Demand Cools Inflation, TD Securities Says
The Reserve Bank of Australia is likely to keep its cash rate unchanged at its next meeting, as evidence of slowing domestic demand reduces the urgency for further tightening, according to an analysis by TD Securities. TD Securities economists noted that recent data points to a moderation in consumer spending and business investment, which is helping to cool price pressures across the economy. This demand-side softening gives the RBA room to maintain its current policy stance without risking an overheating economy.