The Reserve Bank is unlikely to deliver a second straight rate cut as it seeks to balance the need to boost economic growth with keeping Sydney and Melbourne house prices under control.
Market pricing for a June rate cut remains at just four per cent, despite last week’s disappointing business investment numbers, which showed spending will likely fall further in the coming financial year.
All 12 economists surveyed by AAP expect the cash rate to remain steady after the RBA’s board meeting, and nine are tipping no move for the rest of 2015.
JP Morgan economist Stephen Walters said it was almost certain the RBA would keep rates on hold, given May’s quarter of a percentage point cash rate cut.
“Having trimmed the cash rate only a few weeks ago … officials probably are content for now to be inactive, as they assess the impact of this year’s policy action,” he said.”
Mr Walters said the focus for the June meeting would be whether the RBA indicates if it is open to further reductions later in the year.