2 Jul 2015
RBA to stay on the sidelines next week – TDS
FXStreet (Edinburgh) - Rich Kelly, Strategist at TD Securities, expects the RBA to leave rates on hold at its next meeting.
Key Quotes
“We expect the RBA to leave the cash rate at 2% at next week’s meeting and for the bank to exclude an explicit easing bias”.
“The statement should be a cut and paste of the June statement, so there should be no surprises”.
“The RBA remains in a period of inactivity with no fundamental catalyst to cut over the next 2-3 months”.
“Data has not been weak enough to warrant an RBA shift, even if underlying Q2 CPI (out on July 22nd) comes near the RBA’s 2.25% forecast or slightly below”.
“However the Bank is likely to reaffirm its view on the AUD stating that “further depreciation seems both likely and necessary.”
Key Quotes
“We expect the RBA to leave the cash rate at 2% at next week’s meeting and for the bank to exclude an explicit easing bias”.
“The statement should be a cut and paste of the June statement, so there should be no surprises”.
“The RBA remains in a period of inactivity with no fundamental catalyst to cut over the next 2-3 months”.
“Data has not been weak enough to warrant an RBA shift, even if underlying Q2 CPI (out on July 22nd) comes near the RBA’s 2.25% forecast or slightly below”.
“However the Bank is likely to reaffirm its view on the AUD stating that “further depreciation seems both likely and necessary.”