Australia: RBA on hold in March – Westpac

The Reserve Bank Board will meet on March 3 next week and Bill Evans, Chief Economist at Westpac Institutional Bank is not expecting the RBA to remain on hold. AUD/USD trades at 0.6532.

Key quotes

“We expect the cash rate to remain on hold. However, we do confirm our call for a cut from the RBA at the following meeting on April 7.”

“The pricing for a rate cut in April  has now reached a 60% probability, however, March pricing is still only around 10% and, given the most recent communications from the RBA, that pricing seems consistent with the likely outcome of the meeting.”