(05 NOVEMBER 2017)The week ahead: Will Australia's cbank hike rates?

The central banks of Australia (RBA) and New Zealand (RBNZ) will meet next week to decide on their monetary policy stance.

CIO doesn't expect a rate hike from the RBA until later next year, as it has to balance financial stability worries with weak wage growth and core inflation. The RBNZ should also stay on hold for now, but higher inflation is likely to lay the foundation for a rate hike in 3Q18.

Furthermore, the Scandis, the SEK and NOK, may receive heightened attention next week. Both have weakened recently. The Riksbank meeting minutes next week may hint that some board members are becoming more hawkish, although the real focus will be on the December meeting. NOK weakness, however, is justified in CIO's view, given Norway's weak inflation and house price downturn. New data about both will be released next week.

(By UBS)