FXStreet (Guatemala) – Sean Callow, analyst at Westpac Banking Corporation explained that there should be little tension around the RBA meeting with all forecasters expecting rates to remain on hold, though some investors might punt on a notable change in wording of the statement.
Key Quotes:
“Westpac forecasts the cash rate target to remain at 2.0% while the RBA’s growth expectations remain at or above trend.”
“With AUD around where it was at the last meeting, there should also be no change in the rather neutral language around the currency in the statement.”
“The final sentence in the statement should use identical language, vague enough to maintain debate over whether there is a lingering slight easing bias. Markets are pricing 50% chance of a rate cut by Dec 2015, rising to beyond 100% by March 2016.”
(Market News Provided by FXstreet)