RBA: first rate hike to come in Q1 2019? - Nomura
|Analysts at Nomura explained that the Reserve Bank of Australia (RBA) left its cash rate at 1.50% as was uniformly expected.
Key Quotes:
"The press release repeated key messages and did not indicate any material shift in thinking. Rates bears could point to the addition of a new phrase, that “the rate of wage growth appears to have troughed”, although bulls could note a more emphatic comment that “the housing markets in Sydney and Melbourne have slowed”.
Overall, the press release suggests that, with the passage of time, the RBA still believes it is on track towards meeting its inflation and employment objectives. We remain on the lookout for any shift in tone over coming months, which we believe will most likely be in a hawkish direction. Our base case remains for a first rate hike in Q1 2019, although we still see risks tilted towards an earlier move."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.