3 Dec 2013
Flash: RBA focus will be on the language towards the Aussie - Westpac
FXstreet.com (Bali) - There is wide-spread consensus on the RBA staying on hold today, notes Sean Callow, FX Strategist at Westpac, with only a -1bp priced.
Key Quotes
"The bank should express a little more confidence that its previous monetary easing is helping interest rate-sensitive sectors such as construction and non-mining investment."
"The 2.5% cash rate should again be deemed “appropriate” i.e. no explicit easing bias. But AUD focus will be on the language on the currency."
"In Nov the RBA deemed AUD to be “still uncomfortably high” and said a lower AUD is “is likely to be needed to achieve balanced growth in the economy”.
Key Quotes
"The bank should express a little more confidence that its previous monetary easing is helping interest rate-sensitive sectors such as construction and non-mining investment."
"The 2.5% cash rate should again be deemed “appropriate” i.e. no explicit easing bias. But AUD focus will be on the language on the currency."
"In Nov the RBA deemed AUD to be “still uncomfortably high” and said a lower AUD is “is likely to be needed to achieve balanced growth in the economy”.