5 Aug 2015
RBA could remain ‘on hold’ for 2015 and 2016 – Westpac
FXStreet (Edinburgh) - Strategist at Westpac Sean Callow sees the RBA refraining from easing throughout the remainder of 2015 and 2016.
Key Quotes
“The RBA held the cash rate at 2.0% in August”.
“The statement retained much of the wary language used since the May rate cut”.
“There was no overt policy bias in the statement but spare capacity remains in the economy and inflation is under control”.
“The only surprise was in the removal of the view that further AUD decline is “likely and necessary.”
“Westpac expects rates to be kept on hold through 2015 and indeed 2016. But risks of a surprise are tilted towards 1.75%”.
“Markets are pricing a 50% chance of another rate cut by Feb 2016, rising to 60% by May 2016”.
Key Quotes
“The RBA held the cash rate at 2.0% in August”.
“The statement retained much of the wary language used since the May rate cut”.
“There was no overt policy bias in the statement but spare capacity remains in the economy and inflation is under control”.
“The only surprise was in the removal of the view that further AUD decline is “likely and necessary.”
“Westpac expects rates to be kept on hold through 2015 and indeed 2016. But risks of a surprise are tilted towards 1.75%”.
“Markets are pricing a 50% chance of another rate cut by Feb 2016, rising to 60% by May 2016”.