30 Jan 2015
RBA may keep rates intact next week – TDS
FXStreet (Barcelona) - The TD Securities Team expects RBA’s February 3rd February meeting to see the central bank keep rates on hold but to express a clear easing bias.
Key Quotes
“There is a significant amount of data out of Australia next week, but in the main event, we expect the RBA to keep the cash rate at 2.5% but the communiqué to express a clear easing bias.”
“While the RBA will acknowledge that lower oil prices are growth positive, the Bank will not be able to ignore the significant drop in inflation expectations and global easing efforts.”
“With February 60% priced for a cut, and March fully priced for a cut, an explicit easing bias feeds the OIS beast without wasting valuable bullets.”
Key Quotes
“There is a significant amount of data out of Australia next week, but in the main event, we expect the RBA to keep the cash rate at 2.5% but the communiqué to express a clear easing bias.”
“While the RBA will acknowledge that lower oil prices are growth positive, the Bank will not be able to ignore the significant drop in inflation expectations and global easing efforts.”
“With February 60% priced for a cut, and March fully priced for a cut, an explicit easing bias feeds the OIS beast without wasting valuable bullets.”