19 May 2015
RBA minutes wont't suggest further rate cuts - Capital Economics
FXStreet (Bali) - Paul Dales, Chief Economist Australia/NZ at Capital Economics, doesn't expect the minutes of the RBA May meeting to suggest that more rates cuts are on the way, even if Paul believes that the easing bias will be re-adopted soon again.
Key Quotes
"We don’t expect the minutes of the Reserve Bank of Australia’s (RBA) May meeting (02.30 BST) to suggest that more rates cuts are on the way, but we think further easing will be back on the agenda soon."
"We already know from the Statement on Monetary Policy that the RBA revised down its forecasts for both growth and inflation, largely due to lack of any signs of a pick-up in non-mining investment."
"If we are right in expecting the economy to continue to weaken, rate cuts should be back on the agenda before too long."
"What’s more, if members of the Reserve Bank board raised concerns about the appreciation of the Australian dollar against its US counterpart at the meeting, these concerns will only have grown."
Key Quotes
"We don’t expect the minutes of the Reserve Bank of Australia’s (RBA) May meeting (02.30 BST) to suggest that more rates cuts are on the way, but we think further easing will be back on the agenda soon."
"We already know from the Statement on Monetary Policy that the RBA revised down its forecasts for both growth and inflation, largely due to lack of any signs of a pick-up in non-mining investment."
"If we are right in expecting the economy to continue to weaken, rate cuts should be back on the agenda before too long."
"What’s more, if members of the Reserve Bank board raised concerns about the appreciation of the Australian dollar against its US counterpart at the meeting, these concerns will only have grown."