The Australian economy continues to be near normal for key economic activity indicators, including output growth and unemployment, while Inflation remains below the RBA’s target range. Credit availability remains tight, and housing and stock markets have corrected substantially in recent months. Thus no change in the cash rate is needed this month.
The peak of the business cycle for Australia’s main trading partners looks increasingly likely in 2019-20, the more so because of the worsening tariff war between China and the USA. Therefore increases in the future cash rate may well turn out to be inappropriate.