RBA expected to hold rates at 2% through 2016 - Westpac

Research Team at Westpac, notes that the RBA held the cash rate at 2.0% in March as expected while the statement contained only minor changes from February.

Key Quotes

“The view was summed up as “the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target.”

Westpac expects rates to be kept on hold at 2% through 2016. We do not believe recent global turmoil will inflict sufficient damage to Australian domestic demand or the job market to warrant renewed easing, though low inflation keeps the door open for action if the growth outlook deteriorates.”