RBA: no doubts - Westpac

Analysts at Westpac explained that the Reserve Bank Board next meets on September 5. 

Key Quotes:

"There is no doubt that the Board will continue to leave the cash rate on hold. The more interesting question is whether, as expected by markets and signalled by consumers’ responses in this survey, the RBA will raise rates next year. 

High business confidence and improving employment conditions along with the Bank’s own upbeat growth forecasts support the case for higher rates. 

On the other hand we continue to see evidence of a downbeat consumer and signs that the housing markets are set to slow under the weight of stretched affordability. 

Our view is that these factors will slow growth and, along with an inflation rate which remains stubbornly below the Bank’s target zone, will preclude the need for higher rates next year."