TWEET TALK: Just a little longer

Economists believe there is evidence enough for a rate cut today but that the RBA will wait to be sure and move later in the year.

But Eureka Report investment strategist Adam Carr (@AdamCarrEcon) says the RBA should hold, though may be tempted to hit the panic button in light of China woes, potential US stimulus and iron ore prices.

"I think they'll just sound a note of caution on China then given those signals," he tweeted.

"The Fed easing is inflationary for us, especially with US growth above trend. Adds to case to hold. China is a tougher one – official stats suggest still solid, albeit slower growth. Iron ore prices tell a different story.

"The risk is they panic again and cut, but I think they hold. They might panic because of the slump in iron ore prices. It doesn't take much to spook them...

"But I think they hold because they got burnt so badly last time, calling domestic economic weakness... when of course economic data showed the economy was strong."

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