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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
STIR
Yesterday's RBA meeting didn't come as a surprise to the market, which had attached an 81% chance of a no-change outcome. However, the board's less hawkish guidance did cause a reaction as the RBA stated that "some further tightening of policy may be needed".
- RBA Governor Lowe is set to give an address at The National Press Club in Sydney today (at 0330 BST), which the market is hoping will offer deeper insights into the bank's perspective on the economy and the outlook for monetary policy.
- At present, RBA-dated OIS pricing is flat to 6bp softer across meetings. There's a 21% chance of a 25bp hike priced for the May meeting.
- With the RBA board signalling their belief that inflation has peaked, the market's attention is now firmly focused on the release of Q1 CPI on April 26, particularly as year-end easing expectations stand at 29bp.
Figure 1: RBA Dated OIS: Today Vs. Pre-RBA
Source: MNI – Market News / Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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