According to Jinshi Data, the Reserve Bank of Australia may keep interest rates at 4.35% for the sixth consecutive meeting on Tuesday. Although Australia's inflation has slowed to a more than two-year low, it is still above the target. Weak inflation data and a stock market plunge triggered by global risk aversion may prompt it to sound less hawkish.
Given the growing global growth concerns over a US recession, rate cuts by major central banks and a rapid deterioration in risk sentiment, the RBA is likely to avoid a debate on rate hikes and may not reiterate that it is not ruling out any policy options, which would be interpreted as dovish.