11 Apr 2014
RBA first rate hike to come in early 2015 - Nomura
FXStreet (Bali) - After the upbeat jobs report in Australia, Charles St-Arnaud and Martin Whetton, Economist and Strategist at Nomura, maintain their call for the first rate hike in Australia in early 2015.
Key Quotes
"The report sits with the recent run of better data from Australia and suggests that the economy is likely to have passed its weakest point (towards the end of 2013.)."
"Markets will now look to the Q1 CPI data on 23 April, where a rise of 0.6% or more would take the annual rate over 3% on a headline basis."
"With no employment data out before the next CPI data, the potential for the market to overshoot is now higher."
"We maintain our view that the RBA will remain on hold over the course of 2014, with the first rate hike to come in early 2015."
Key Quotes
"The report sits with the recent run of better data from Australia and suggests that the economy is likely to have passed its weakest point (towards the end of 2013.)."
"Markets will now look to the Q1 CPI data on 23 April, where a rise of 0.6% or more would take the annual rate over 3% on a headline basis."
"With no employment data out before the next CPI data, the potential for the market to overshoot is now higher."
"We maintain our view that the RBA will remain on hold over the course of 2014, with the first rate hike to come in early 2015."