From Goldman:
Monetary Policy Implications: We do not see cause for a November rate cut
Following this report, interbank futures now show a 60% chance of a November rate cut from 85% at yesterday's close. From our perspective, though both pricing and the consensus of local economists continue to suggest a rate cut at that meeting, our objective reading of the economic environment is still that rates should remain on hold. We note: (1) The RBA's statement from the October meeting that it is appropriate for the stance to be "a little more accommodative" suggests a November rate cut was not pre-ordained at that time; (2) developments since the October decision (global and local economic data, market sentiment, house price developments, mining project announcements, the government’s mid-year budget) have incrementally pointed to less rather than more easing.
