The decision to pause the rate cut after October’s rate cut was widely expected because unemployment had improved slightly and inflation had risen slightly. Futures markets expect less than a 10 per cent chance of a rate cut, and prices are no longer pricing in another 25 basis points over 18 months.
Although improved unemployment and inflation figures, and a rebound in house prices, mainly in Sydney and Melbourne, have eased RBA pressure to cut interest rates slightly, growth continues to be below its long-term trend. On Friday, the RBA is expected to cut its forecast for quarterly GDP growth, which is now at a 10-year low of 1.4%.
https://www.abc.net.au/news/2019-11-05/rba-keeps-rate-on-hold-at-0.75pc/11671870