RBA could be on hold until November – Westpac

FXStreet (Guatemala) – Sean Callow, analyst at Westpac Banking Corporation noted that the RBA recently held the cash rate at 2.0% in June, as expected and explained that Westpac sees rates on hold to at least Nov 2015…

Key Quotes:

“The statement retained much of the upbeat language that surprised markets in May when they cut rates. There was no overt policy bias in the statement.”

“Westpac expects rates to be kept firmly on hold until at least Nov 2015 when the Board should assess whether its relatively positive outlook for growth in 2016 (3%) can be sustained.”

“Our base case is steady rates into 2016 but risks of a surprise are tilted towards 1.75%. The Q1 GDP data doesn’t really alter the risks of another cut in our view. Markets are pricing around a 60% chance of another rate cut by Dec 2015.”

Sean Callow, analyst at Westpac Banking Corporation noted that the RBA recently held the cash rate at 2.0% in June, as expected and explained that Westpac sees rates on hold to at least Nov 2015…

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