Free Trial

RBA Set To Deliver A String Of Hikes, Keep Guidance Hawkish (WSJ)

RBA

WSJ RBA watcher Glynn writes “there was enough nastiness in Australia’s recent fourth-quarter inflation report to lock in the prospect of several interest-rate increases over the coming months, with the data confirming that the country continues to lag well behind other major economies in the race to tame prices.”

  • “Not even this week’s news that retail sales dropped 3.9% on month during the key period of December seems like it will be enough to dissuade the Reserve Bank of Australia from raising interest rates again at its first policy meeting of the year next Tuesday.”
  • “There is too much statistical noise in the retail sales figures amid consumers’ shifting spending patterns, and the RBA will probably focus more on its business liaison data showing that retailers are still enjoying fat profits.”
  • “There is also unlikely to be much, if any, softening of the RBA’s guidance next week. A 50-basis-point increase will likely be discussed, though a 25-basis-point rise is a far more likely outcome.”
  • Click for full report.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

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.