National Australia Bank now expects the Reserve Bank to remain on hold until November, before the central bank starts cutting from the current cash rate of 4.35 per cent.
Chief economist Alan Oster said the major bank had previously forecast the RBA to increase the cash rate to 4.6 per cent to take some further insurance that inflation would reach the target band over the next two years.
“However, with the RBA having been reluctant to move higher and the Q4 CPI print providing some breathing room, the data will not push the Board in the same manner as November,” Oster wrote.
