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4 Mar 2015
RBA likely to move next month - ANZ
FXStreet (Bali) - According to ANZ Econmists, further easing from the RBA remains a high probability.
Key Quotes
"The RBA Board left the cash rate unchanged at 2.25% yesterday. However, the RBA retains a strong easing bias using the terminology of “time being” and indicating that “further easing of policy may be appropriate over the period ahead”. We believe they will act on this easing bias at the next meeting in April."
"The statement highlighted concerns about non-mining growth momentum, the potential for further upward pressure on the unemployment rate and continued to point out that the Australian dollar remains above its fundamental value. Meanwhile, there are few concerns about inflation."
"Importantly, the RBA Board noted risks associated with the effect of low interest rates on the housing market. The statement made two points on this: strong house price gains and investor activity are mainly an issue in the Sydney market and that they will work with other regulators to mitigate the risks to the financial system and the broader economy."
"Our view is that a sustained non-mining recovery remains elusive, and as such, further easing from the RBA remains a high probability. We will do a full review of our medium-term forecasts for the Australian economy following the release of the GDP numbers today."
Key Quotes
"The RBA Board left the cash rate unchanged at 2.25% yesterday. However, the RBA retains a strong easing bias using the terminology of “time being” and indicating that “further easing of policy may be appropriate over the period ahead”. We believe they will act on this easing bias at the next meeting in April."
"The statement highlighted concerns about non-mining growth momentum, the potential for further upward pressure on the unemployment rate and continued to point out that the Australian dollar remains above its fundamental value. Meanwhile, there are few concerns about inflation."
"Importantly, the RBA Board noted risks associated with the effect of low interest rates on the housing market. The statement made two points on this: strong house price gains and investor activity are mainly an issue in the Sydney market and that they will work with other regulators to mitigate the risks to the financial system and the broader economy."
"Our view is that a sustained non-mining recovery remains elusive, and as such, further easing from the RBA remains a high probability. We will do a full review of our medium-term forecasts for the Australian economy following the release of the GDP numbers today."