The RBA’s primary concern may soon change

Although the Reserve Bank of Australia’s meeting on Tuesday 4th April won’t be very exciting, as the RBA will leave interest rates at 1.5% for the sixth meeting in a row, events over the next month could make May’s meeting much more interesting. By then the RBA will have more news on the extent of the recent softening in the labour market, it will have the CPI inflation data for the first quarter and it will presumably have more clarity on the likely tightening in regulatory rules on mortgage lending. That could all prompt the RBA to worry less about financial stability and worry more about low inflation, perhaps opening the door to further rate cuts later in the year.