RBA Preview: Dovish tones evident even as QE tapered – NAB
The Reserve Bank of Australia (RBA) is seen pushing back the market’s pricing of a rate hike while tapering its bond buys on Tuesday, analysts at National Australia BankMedium (h2)
(NAB) said of the July 6 meeting.
Key quotes
“The RBA remains skeptical on the outlook for wages, despite the jobless rate declining.”
“The RBA could therefore seek to sound more dovish next Tuesday, in order to push back against the market pricing of a winding back of easing.”
“Dovish tones could be evident at the July Board Meeting even as the RBA does not roll its 3yr YCC target and as QE is tapered.”
“A re-statement of the conditions for a rate hike being not likely until at least 2024 would be one way to push back on market pricing. “
“Not tapering QE with a defined program length would be another.”
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