RBA Meeting: Forecast Revisions in the Spotlight

• Looking ahead, tomorrow’s RBA meeting is the key event of the week. The Bank is expected to stay on hold, with focus on the updated forecasts for clues on how policymakers are viewing the outlook post last week’s CPI.
• US bond markets ended the week a touch softer, with yields easing on Friday but still higher over the week.
• The 10-year finished at 4.08%, up 8bps over the week, as markets weighed up ongoing uncertainty around the Fed’s next steps and the prolonged US government shutdown.
• FOMC dissenter Schmid outlined his stance in a follow-up statement, noting the labour market looks broadly balanced while inflation remains too high, reinforcing the view that the Fed is in no rush to move again.
• At home attention turns to today’s September Household Spending Indicator, with consensus at +0.4%. Spending growth has eased after a strong middle of the year, but a positive read would still point to underlying resilience.