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3 Nov 2015
RBA on hold for now while contingent easing bias added – TDS
FXStreet (Delhi) – Research Team at TD Securities, notes that the RBA kept rates on hold at 2% and added a contingent easing bias and the tone was not as dovish as the shift in stance would suggest.
Key Quotes
“The RBA on balance remains upbeat, referring to a pickup in confidence, credit growth, solid employment growth, and that house prices were still rising. The Board was not rattled by out-of-cycle mortgage rate increases either, saying “While the recent changes to some lending rates for housing will reduce this support slightly, overall conditions are still quite accommodative”. The reference to slowing China was dropped. Given the dovish element was confined to inflation, expect the Bank’s CPI forecasts to be revised down from 2.5%/yr to 2.25%/yr this Friday.”
Key Quotes
“The RBA on balance remains upbeat, referring to a pickup in confidence, credit growth, solid employment growth, and that house prices were still rising. The Board was not rattled by out-of-cycle mortgage rate increases either, saying “While the recent changes to some lending rates for housing will reduce this support slightly, overall conditions are still quite accommodative”. The reference to slowing China was dropped. Given the dovish element was confined to inflation, expect the Bank’s CPI forecasts to be revised down from 2.5%/yr to 2.25%/yr this Friday.”