From CBA today:
"We still expect the next rate move to be up. But we have pushed back the timing of that move to February 2012...The policy message from the economic fundamentals has been largely obscured by the perceived policy implications of financial market volatility. Those fundamentals had the RBA toying with raising rates at the August Board meeting. And those fundamentals underlie RBA forecasts showing above‑trend economic growth and above‑target inflation over the medium term. Making a monetary policy call when markets are changing direction on a daily basis is difficult. Actually changing monetary settings in response to market fluctuations divorced from the economic fundamentals is unlikely. RBA Governor Stevens made the point in his Parliamentary testimony a few days ago when he noted policy decisions reflected not only the baseline forecasts but also the risks around those forecasts. And that it made sense to “stand still”."
