Analysts at TD Securities, (TDS), exlained their outlook for the RBA this week.
Key Quotes:
“The RBNZ’s dovish June OCR Statement has the market guessing whether the RBA will also sprinkle some of that dovish dust.”
“TDS expects the RBA cash rate to remain at 1.50%, but believe the statement is likely to disappoint the doves.”
“Recent RBA commentary on wages implies a hike may be further away, BUT the bar to cut remains extremely high”.
“The RBA is likely to point to the build up in trade tensions & the China sell-off , but is unlikely to sound concerned right now.”
“The Bank may comment on the recent AUD decline, but given it remains in the range stuck for the last 2 years, there is not much to see here.”
“We don’t expect the RBA is likely to be spooked by the recent out of cycle 9-15bps hike in mortgage rates by the small lender.”
Share
