Recent data not enough for the RBA to shift course

In recent weeks, the Reserve Bank of Australia has continued to push back against expectations of monetary tightening. We think the RBA will keep policy settings unchanged at the meeting on 6th April. And later this year we expect the Bank to announce a further extension to its asset purchase programme. What’s more, we think the market is overzealous in pricing in rate hikes as early as next year. We think rates will be on hold at least for a couple more years and probably until 2024.