RBA to keep its powder dry in the next months – Danske Bank

FXStreet (Edinburgh) - Despite today’s dovish rhetoric by the RBA, Analyst Kristoffer Lomholt sees the central bank refraining from lowering rates for the next 12 months.

Key Quotes

“In Australia, central bank governor Stevens stated in a speech that the Reserve Bank is ‘open to the possibility of further policy easing, if that is, on balance, beneficial for sustainable growth’.

“Markets are currently confused as to the degree of the current RBA easing bias”. 

“Consequently, last night’s comments together with a weak consumer confidence release sparked new speculations of further rate cuts”.

“We do, however, still expect Stevens to hold rates unchanged in the next 12 months”.

Despite today’s dovish rhetoric by the RBA, Analyst Kristoffer Lomholt sees the central bank refraining from lowering rates for the next 12 months...