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4 Oct 2013
Flash: RBA rate cut call revised from Nov to Feb - Westpac
FXstreet.com (Barcelona) - Bill Evans, Westpac's chief economist, has revised its call for a rate cut by the Reserve Bank of Australia from November 2013 to now expect the next cut to take place in February.
Key Quotes
“We expect that if the RBA was setting policy off our forecasts for growth and unemployment then a November move would still be likely."
"However, the recent boosts to business and consumer confidence (both noted by the governor in his statement) in anticipation of the expected election result raise the possibility of much more buoyant domestic demand in 2014 than our own forecast."
"The governor has also expressed his caution around these results (‘too soon to judge how persistent this will be’) but these comments alone indicate a preparedness to await more information around the resilience of the confidence boost.”
Key Quotes
“We expect that if the RBA was setting policy off our forecasts for growth and unemployment then a November move would still be likely."
"However, the recent boosts to business and consumer confidence (both noted by the governor in his statement) in anticipation of the expected election result raise the possibility of much more buoyant domestic demand in 2014 than our own forecast."
"The governor has also expressed his caution around these results (‘too soon to judge how persistent this will be’) but these comments alone indicate a preparedness to await more information around the resilience of the confidence boost.”