RBA minutes: Things can only get better - ING
|According to Rob Carnell, Chief Economist at ING, Minutes from the RBA’s July meeting can be loosely summed up as, “1Q17 was not great, 2Q17 is looking better, and 2H17 looks as if it could be better still”.
Key Quotes
“Beyond this, there was little to be read into the minutes that could be viewed as strongly challenging the market expectation for nothing from the RBA until 1/2Q 2018, though bank bill futures implied rates have been creeping up for the early part of 2018, and this is a trend that is likely to continue.”
“The other interesting diversion was the report of the discussion about the equilibrium nominal cash rate. The consensus was that this was about 3.5%, which implies that the RBA’s current stance, was very accommodative – even taking into account the low rates of wage and inflation growth. With a lot of normalisation theoretically to be done, this is one argument the RBA may use to justify an earlier rate hike. It is not inconceivable that they will do so before the end of this year. And with China motoring strongly in the background, this argument will likely gain traction in the months ahead.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.