The Reserve Bank of Australia will almost certainly leave interest rates on hold at 1.5% at its policy meeting on Tuesday 3rd April and it’s likely to reiterate that rate hikes remain some way off by once again saying that progress in returning inflation to target is expected to be “gradual”. Further ahead, we expect that rates will remain on hold throughout 2018 and the first half of 2019 as inflationary pressures remain subdued.
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