RBA Statement on Monetary Policy previewed – ANZ
|In the view of the Australia and New Zealand Banking Group analysts, “the coming week is full of important data releases and events, not least the November Statement on Monetary Policy (SoMP). “
Key Quotes:
“We think the Reserve Bank’s near-term GDP forecasts will be revised down a touch, reflecting the June quarter GDP result and what appears to be softer than expected consumer spending in the third quarter.
On that score, the retail sales data due on Monday will be of considerable interest. August retail sales pointed to a positive impact from the tax and interest rate cuts, and we think there will be more evidence of this in September, albeit lower than what we expected earlier in the year. This would be an indication of the “gentle turning point in economic growth” that the RBA Governor referred to earlier this week.
While at the margin this weakens the case for further rate cuts, we struggle to see how unemployment can fall as far as the RBA wants without further easing. Not least because inaction would likely see the AUD push higher.”
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.