RBA Likely to Keep Rates on Hold After Weak Data, Tax Changes – TD Securities

TD Securities' Prashant Newnaha and Howard Du expect the Reserve Bank of Australia to maintain its cash rate at 4.35% at the upcoming meeting, with a prolonged hold likely.

Their view is based on recent weak Australian economic data and changes to the federal budget's tax structure. The output gap signal suggests the RBA will stay on hold for an extended period, according to the analysts.