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RBA on hold next week – still expect a March cut

The Reserve Bank Board meets next week on February 5.  I expect the Board will decide to hold rates steady at this meeting.

I certainly do not believe that the rate cut cycle has ended and, to date, expect there will be a rate cut of 25 bp's at the March meeting on March 5.

Between next week and the March meeting, the Board will have the opportunity to: assess another jobs report; receive further evidence from the quarterly Wage Price Index; and a further report on the outlook for business investment.

In particular, the next Capex Survey will include the first estimate for investment intentions for fiscal year 2013/14.