Morgan Stanley Previews This Week's Policy Meeting at Australias Central Bank

BY MT Newswires | ECONOMIC | 02/02/26 11:29 AM EST

11:29 AM EST, 02/02/2026 (MT Newswires) -- Morgan Stanley said it expects the Reserve Bank of Australia to hold the cash rate at 3.6% this week, against consensus expectations and market pricing of about 68% for a hike.

The RBA is slated to release its policy statement at 10:30 p.m. ET on Monday.

Morgan Stanley estimates the RBA's Board to frame the decision as dependent on continued sequential slowing in demand and inflation, keeping future hikes firmly on the table.

However, the bank thinks that an extended hold is ultimately more likely.

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