Sally Auld, JPMorgan:

The RBA acknowledged that tomorrow's GDP data will bring a slower year ended GDP growth rate, thanks to "…quarter-to-quarter variation in the growth figures". So as expected, the RBA have highlighted the likelihood of a weaker outcome tomorrow, but refrain from reading anything of significance into it. As long as the RBA can attribute quarter-to-quarter volatility in GDP outcomes to unusual weather (higher than is usual rainfall in Eastern Australia in 1Q, Cyclone Debbie in 2Q), RBA neutrality is likely to persist for sometime yet.

Su-Lin Ong, RBC Capital Markets:

Barely a month out from its most recent detailed update including key macro forecasts which was both upbeat and confident, it was unlikely that today's statement was going to convey a significantly different message. Indeed, the RBA suggests that "economic growth is still expected to increase gradually over the next couple of years to a little above 3 per cent." Some of the shift in language, however, hints at a little less confidence and gives the RBA some wriggle room to lower its GDP/inflation forecasts should data in the coming months continue to disappoint. We continue to think that the risk is for a final 25bp cut in Q4.

Stephen Halmarick, CFSGAM:

We continue to hold the view that the RBA is likely to maintain the 1.5% cash rate until well into 2018. In doing so the RBA is expected to balance the risks between 1) a soft domestic economy/labour market, 2) high household debt and a tight housing market and 3) inflation close to the 2%-3% target range

Rahul Bajoria, Barclays:

On monetary policy, RBA appears comfortable with a neutral stance for now. The current weakness in household consumption and wages will continue to keep RBA watchful, despite the improvement in business conditions. If the trend of improvement in the labour market continues and wages start to rise at the margin, it may create conditions for RBA to normalise policy, but not before those trends are firmly established. We think the RBA is likely to wait for CPI inflation to hold consistently above 2% in the next 6-12 months before signalling a shift in its stance. We continue to expect the RBA to start raising interest rates in Q2 18.

Craig James, CommSec:

The Reserve Bank board is not in a rush to move interest rates in any direction. Much would need to go wrong at home and/or abroad for the Reserve Bank to cut rates again. Interest rates are at record lows and neither consumers nor businesses are keen to take up new loans. Rather, the focus is on paying down debt. Record home building and a large pipeline of infrastructure spending will support the economy over 2017.

Rob Rennie, Westpac:

The A$ did pop modestly higher on the outcome, unwinding the weakness seen earlier in the day on the disappointing net export contribution to Q1 GDP. One factor that may have helped the currency was reference to "economic growth is still expected to increase gradually over the next couple of years to a little above 3 per cent" despite "quarter-to-quarter variation in the growth figures" suggesting the RBA is looking through what could be a soft outcome tomorrow. We see the A$ as being fairly priced at the moment, though with the Fed set to raise rates next week and commodity prices expected to weaken as we move through the end of the year, strength into the 0.75/0.7550 region is seen as a sell opportunity.