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1 Oct 2013
Flash: What to expect from the RBA? - Westpac
FXstreet.com (Barcelona) - The low pricing of just -1bp for today’s RBA rate decision suggest the low expectations around the monthly announcement at 4.30GMT, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"The Sep minutes referred to a desire not to indicate an “imminent” policy change despite not ruling out another rate cut either."
"The FOMC’s unexpected steady hand is one key surprise for the RBA over the past month, even if its impact on AUD has been wiped out."
"The statement should retain the reference to the possibility that 'the exchange rate will depreciate further over time' and will only be bearish AUD if the phrase 'scope to ease policy further' returns."
Key Quotes
"The Sep minutes referred to a desire not to indicate an “imminent” policy change despite not ruling out another rate cut either."
"The FOMC’s unexpected steady hand is one key surprise for the RBA over the past month, even if its impact on AUD has been wiped out."
"The statement should retain the reference to the possibility that 'the exchange rate will depreciate further over time' and will only be bearish AUD if the phrase 'scope to ease policy further' returns."