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6 Aug 2014
RBA unlikely to change its policy rate any time soon - Nomura
FXStreet (Bali) - Australia Economist Charles St-Arnaud, from Nomura, notes that overall, Tuesday's RBA decision to leave the policy rate unchanged was consistent with the bank's view that the RBA has a neutral policy stance and is unlikely to change its policy rate any time soon.
Key Quotes
"Overall, today‟s decision to leave the policy rate unchanged was consistent with our view that the RBA has a neutral policy stance and is unlikely to change its policy rate any time soon."
"Tuesday's statement continues to show that the RBA has maintained its cautiously positive outlook on the economy, despite the expected drag from resources investment and public spending."
"Moreover, in light of the continued weakness in commodity prices relevant for the Australian economy, the RBA continued to express discomfort that AUD is diverging too much from fundamentals. We maintain our view that the next policy move will be a hike in the first half of 2015."
"The release of the Statement on Monetary Policy on Friday will provide more details on the RBA‟s economic outlook. As such, we expect the RBA to revise slightly lower its growth forecast and raise the front end of the inflation outlook."
"There was very little movement in rates and the currency following the relatively neutral statement, with AUD moving slightly higher to 0.934 and rates selling off about half a point. There had been some expectations for some time in markets that the RBA could cut its policy rates this year, as a bit less than 10bp were priced in before the meeting."
Key Quotes
"Overall, today‟s decision to leave the policy rate unchanged was consistent with our view that the RBA has a neutral policy stance and is unlikely to change its policy rate any time soon."
"Tuesday's statement continues to show that the RBA has maintained its cautiously positive outlook on the economy, despite the expected drag from resources investment and public spending."
"Moreover, in light of the continued weakness in commodity prices relevant for the Australian economy, the RBA continued to express discomfort that AUD is diverging too much from fundamentals. We maintain our view that the next policy move will be a hike in the first half of 2015."
"The release of the Statement on Monetary Policy on Friday will provide more details on the RBA‟s economic outlook. As such, we expect the RBA to revise slightly lower its growth forecast and raise the front end of the inflation outlook."
"There was very little movement in rates and the currency following the relatively neutral statement, with AUD moving slightly higher to 0.934 and rates selling off about half a point. There had been some expectations for some time in markets that the RBA could cut its policy rates this year, as a bit less than 10bp were priced in before the meeting."