Although the Reserve Bank of Australia will note the strength of the recent news on the domestic economy while leaving interest rates at 1.50% at the meeting on Tuesday 2nd October, it’s unlikely to show signs that the data have made it keener to raise rates. Our new forecast that the RBA won’t raise rates until late in 2020 suggests that the RBA will stay on the side-lines for a year longer than the markets and most other analysts assume.
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