Barclays: RBA Governor Stevens' speech this Friday likely to be dovish
11 February 2015, 09:08
0
174
The eFXnews Team shares Barclays' view that Friday’s speech of RBA Governor Stevens' speech is likely to be dovish, raising the prospects of a further rate cut by the central bank.
Key Quotes
“RBA Governor Stevens will testify on monetary policy on Friday and Barclays Capital thinks he will likely argue that the abrupt change in the RBA’s policy stance from neutral forward guidance in December to a rate cut in February was justified by a downgrade to the economic outlook.”
"We believe he will acknowledge that a new record low cash rate could boost rapidly rising house prices, but argue that the RBA and APRA are looking at options to keep things under control. The Governor is generally optimistic, but we think the overall tone will be dovish, raising the prospect of a further rate cut. That said, we do not think he will give much away in terms of timing and we continue to look for the next cut to come in May when the RBA next updates its outlook," Barclays adds.”
“Given this outlook, Barclays expect any bounce in the AUD to be limited even if other major currencies were to extent their recent rally.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“RBA Governor Stevens will testify on monetary policy on Friday and Barclays Capital thinks he will likely argue that the abrupt change in the RBA’s policy stance from neutral forward guidance in December to a rate cut in February was justified by a downgrade to the economic outlook.”
"We believe he will acknowledge that a new record low cash rate could boost rapidly rising house prices, but argue that the RBA and APRA are looking at options to keep things under control. The Governor is generally optimistic, but we think the overall tone will be dovish, raising the prospect of a further rate cut. That said, we do not think he will give much away in terms of timing and we continue to look for the next cut to come in May when the RBA next updates its outlook," Barclays adds.”
“Given this outlook, Barclays expect any bounce in the AUD to be limited even if other major currencies were to extent their recent rally.”
This content has been provided under specific arrangement with eFXnews.
