Lowe’s “gradual” signal on progress towards rate hikes

The Reserve Bank of Australia will almost certainly leave interest rates on hold at 1.5% at its policy meeting on Tuesday 6^th March and it will probably continue to signal that there is no risk of a near-term rate hike. Indeed, as progress in raising inflation to the 2-3% inflation target is likely to be slow, rates will probably remain on hold throughout 2018 and the first half of 2019 too. That would be notably later than the consensus view that the RBA may begin to raise rates later this year.