PREVIEW of RBA & Australia interest rates – The RBA 'shadow board' on what to expect from the RBA tomorrow via ForexLive

From the Australian Financial Review (gated): Manufacturing weakens as RBA shadow board calls for rate hold

In summary

• Manufacturing contracted in August

The shadow board says:

• probability of a rate cut 6%
• Probability for a rate hike was 21%
• Probability the RBA leaves official interest rates at 2.5% is 74% (compared to 71% in August)

(Looks like a but of shadow rounding in there : -D)

Dr. Timo Henckel, from the ANU Centre for Applied Macroeconomic Analysis:

• “The housing market and indicators of sentiment arestrengthening but growth remains slightly below trend and the unemployment rate rose to 6.4 per cent in July”
• “Relative to the previous month, the RBA Shadow Board has become slightly more cautious in its recommendations for interest rates”

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ps. Inflation is comfortably within the RBA target band

posted via ForexLive