8 May 2015
Close interest in RBA’s SMoP - Westpac
FXStreet (Bali) - There is huge interest in the RBA’s Statement on Monetary Policy today, following the new-found neutral stance by the Australian Central Bank after Tuesday’s statement, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"There will be close interest in the RBA’s Statement on Monetary Policy (11:30am Syd/9:30am Sing/HK), after Tuesday’s statement which while announcing a rate cut, was quite positive in tone and did not include a clear policy bias on the outlook."
"The focus will be on both the executive summary, for any hint at a lingering easing bias and the quarterly forecasts. Westpac expects the 2015 GDP growth forecast to be lowered from 2.75% to 2.5% and the 2016 forecast (midpoint) from 3.5% to 3.25%."
"There is less attention on the inflation forecasts, with the RBA forecasting 2-3% underlying inflation from Dec 2015 to Jun 2017 and no great surprise in inflation since the Feb forecasts."
"For AUD/USD, lower growth forecasts should be factored in. An absence of any sort of easing bias could be worth a 40-50 pip gain, while inclusion of such a bias could see a test of 0.7850 support."
Key Quotes
"There will be close interest in the RBA’s Statement on Monetary Policy (11:30am Syd/9:30am Sing/HK), after Tuesday’s statement which while announcing a rate cut, was quite positive in tone and did not include a clear policy bias on the outlook."
"The focus will be on both the executive summary, for any hint at a lingering easing bias and the quarterly forecasts. Westpac expects the 2015 GDP growth forecast to be lowered from 2.75% to 2.5% and the 2016 forecast (midpoint) from 3.5% to 3.25%."
"There is less attention on the inflation forecasts, with the RBA forecasting 2-3% underlying inflation from Dec 2015 to Jun 2017 and no great surprise in inflation since the Feb forecasts."
"For AUD/USD, lower growth forecasts should be factored in. An absence of any sort of easing bias could be worth a 40-50 pip gain, while inclusion of such a bias could see a test of 0.7850 support."