The RBA is expected to keep interest rates on hold

The Wall Street Journal expects the Reserve Bank of Australia (RBA) to have little to discuss at its policy meeting on Tuesday, almost certainly deciding to leave the official cash rate unchanged at 4.1%. Recent data have brought news of cooling inflation, weak wage growth and weak consumption, all of which are inextricably linked to growing concerns about the outlook. However, the RBA's guidance may still include a continued warning that rates may still need to rise further. The bank is still far from abandoning its hawkish stance and is likely to maintain that pattern until it reaches its inflation target of 2.0% to 3.0%. Figures for the third quarter are likely to show an acceleration in wage growth, while electricity prices are also soaring.