3 Feb 2015
RBA to keep rates unchanged - NAB
FXStreet (Bali) - NAB Economists expect the RBA will keep the cash rate unchanged today,with an expectation that they may tweak the language to open up the prospect of a cut in March.
Key Quotes
The RBA meets today amid increased speculation that they may cut interest rates, fuelled by a few press articles in recent days. NAB expects the RBA will keep the cash rate unchanged (the fall in petrol prices affords the RBA room to wait), but there is an expectation that they may tweak the language in the press release to open up the prospect of a cut in March, if February data is disappointing.
On Friday the RBA will release is its Quarterly Statement on Monetary Policy, which will provide updated forecasts on growth and inflation. We expect the inflation forecasts to be revised lower, with headline numbers significantly lowered by the fall in petrol prices, while Dec 2015 underlying inflation likely to be lowered to a midpoint of 2½% from 2¾% previously.
Key Quotes
The RBA meets today amid increased speculation that they may cut interest rates, fuelled by a few press articles in recent days. NAB expects the RBA will keep the cash rate unchanged (the fall in petrol prices affords the RBA room to wait), but there is an expectation that they may tweak the language in the press release to open up the prospect of a cut in March, if February data is disappointing.
On Friday the RBA will release is its Quarterly Statement on Monetary Policy, which will provide updated forecasts on growth and inflation. We expect the inflation forecasts to be revised lower, with headline numbers significantly lowered by the fall in petrol prices, while Dec 2015 underlying inflation likely to be lowered to a midpoint of 2½% from 2¾% previously.