1 Jul 2013
Flash: RBA unlikely to cut rates – NAB
FXstreet.com (New York) - The Month/quarter end portfolio rebalancing and hedge-related flows dominated market price action on Friday, one result of which was the AUD/USD making a new cycle low of 0.9114, notes the NAB Research Team.
According to the NAB Research Team, “The RBA meets on Tuesday with little expectation of a rate cut.”
Ultimately, “while the RBA retains its easing bias, it is unlikely to cut again unless we see a further deterioration in the outlook, or there are clear signs that the May cut has failed to provide any boost to confidence or activity. NAB still expects a further rate cut, but we expect it will happen later in the year. The market is pricing just a 20% chance of a cut next week.” rhe team adds.
Perhaps more revealing that the post-meeting statement, RBA Governor
Stevens addresses the Economic Society in Brisbane on Wednesday. Deputy
Governor Lowe speaks on Thursday in Sydney. Ahead of the RBA, the week kicks off with a number of releases on Monday – AiG Manufacturing, TD Securities inflation, RBA Commodity Prices and RP Data House Prices. House prices are expected to have risen around 1% in June after the 1.2% fall in
May.
According to the NAB Research Team, “The RBA meets on Tuesday with little expectation of a rate cut.”
Ultimately, “while the RBA retains its easing bias, it is unlikely to cut again unless we see a further deterioration in the outlook, or there are clear signs that the May cut has failed to provide any boost to confidence or activity. NAB still expects a further rate cut, but we expect it will happen later in the year. The market is pricing just a 20% chance of a cut next week.” rhe team adds.
Perhaps more revealing that the post-meeting statement, RBA Governor
Stevens addresses the Economic Society in Brisbane on Wednesday. Deputy
Governor Lowe speaks on Thursday in Sydney. Ahead of the RBA, the week kicks off with a number of releases on Monday – AiG Manufacturing, TD Securities inflation, RBA Commodity Prices and RP Data House Prices. House prices are expected to have risen around 1% in June after the 1.2% fall in
May.