The Reserve Bank meets tomorrow, but it’s a big yawn this month, with almost all economists expecting no change in the cash rate. In the perverse world of economics, we potentially have a rash of good (or at least not bad) news coming through, so the RBA will have less reason to reduce the cash rate; indeed, is probably now regretting the last reduction.
On the positive side, better news out of Europe, plus lower fuel prices domestically, will help inflation and cheer up consumers. The negatives include the largely unclear impact of the Carbon Tax, and the RBA will probably want to see how all these factors play out before making another move.
