Bill Evans, senior economist at Westpac, points out that the RBA will release its revised forecasts on February and their growth forecasts will be higher than Westpac’s.
Key Quotes
“Our forecasts remain consistent with RBA on hold. Due to the Government Shutdown the FED will not be in a position to adequately assess the US economy until the June meeting when we expect the next rate hike.”
“After the usual summer recess the Reserve Bank will conduct its Board meeting on February 5, followed by a speech from Governor Lowe on February 6 and the February Statement on Monetary Policy which will print on February 8.”
“Of course there will be no rate change following the Board meeting but there will be considerable interest in the Governor’s Statement and the subsequent communications.”
“The key as to whether the Reserve Bank will placate markets and adopt a pure neutral bias by eliminating the “next move up” in its commentary will hinge on how it reassesses its forecasts which will be released with the February Statement on Monetary Policy which prints on February 8.”
Share
