Flash Notes

The RBA will announce its latest interest rate decision at 12.30pm SGT on Tuesday. We expect the Australian central bankto leave the OCR at a low of 1.5% - an eleventh consecutive month. At the previous meeting, the RBA increased its growthforecasts and also expected underlying inflation to reach around 2.0% by early 2018. Markets will look for evidence whether thisconfident tone has been maintained. The wider rhetoric within the statement will also be important for underlying policyexpectations with a series of key comments in areas such as the labour market, housing sector, commodity prices andthe value of the Australian dollar.