Asian stocks eked out slim gains on Tuesday in holiday-thinned trade with markets in South Korea, Hong Kong and Japan shut.
All eyes were on the Reserve Bank of Australia’s (RBA) monetary policy decision at 12:30 pm SIN/HK. Analysts do not expect a change in the record-low cash rate of 2.5 percent, but there is some focus on whether the RBA will continue to talk down the Australian dollar.
“Today’s RBA rates decision is expected to be a non-event; 87 percent of economists surveyed believe rates will remain on hold at record lows of 2.5 percent. Considering the final line of the statement reads that by ‘present indications, the most prudent course is likely to be a period of stability in interest rates,’ the market mover of today’s meeting will be in the detail and the outlook,” said Evan Lucas, market strategist at IG.