FXStreet (Edinburgh) – Rich Kelly, Strategist at TD Securities, expects the RBA to leave rates on hold at its next meeting.
Key Quotes
“We expect the RBA to leave the cash rate at 2% at next week’s meeting and for the bank to exclude an explicit easing bias”.
“The statement should be a cut and paste of the June statement, so there should be no surprises”.
“The RBA remains in a period of inactivity with no fundamental catalyst to cut over the next 2-3 months”.
“Data has not been weak enough to warrant an RBA shift, even if underlying Q2 CPI (out on July 22nd) comes near the RBA’s 2.25% forecast or slightly below”.
“However the Bank is likely to reaffirm its view on the AUD stating that “further depreciation seems both likely and necessary.”
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