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2 Jun 2015
Interest rates in Australia: Focus on RBA bias - Westpac
FXStreet (Bali) - According to Sean Callow, FX Strategist at Westpac, with markets expecting interest rates in Australia to remain firmly on hold at 2.0% today, the focus will be on the bias.
Key Quotes
"The RBA policy decision will be announced at 2:30pm Syd/12:30pm Sing/HK. Markets are expecting rates to remain firmly on hold at 2.0% after cuts in Feb and May, so the focus will be on the bias."
"There was no forward guidance in the governor’s statement following the May decision. Westpac is expecting a mild easing bias, with the RBA likely to use a phrase such as “scope” for further easing. We also expect the RBA to repeat that “further depreciation [of the AUD] seems both likely and necessary”."
Key Quotes
"The RBA policy decision will be announced at 2:30pm Syd/12:30pm Sing/HK. Markets are expecting rates to remain firmly on hold at 2.0% after cuts in Feb and May, so the focus will be on the bias."
"There was no forward guidance in the governor’s statement following the May decision. Westpac is expecting a mild easing bias, with the RBA likely to use a phrase such as “scope” for further easing. We also expect the RBA to repeat that “further depreciation [of the AUD] seems both likely and necessary”."