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VIEW: ANZ Point To Evolution Of Forward Guidance

RBA

ANZ note that "for us the most notable aspect of RBA Governor Lowe's speech, From Recovery to Expansion, was the omission of the words that it, "is unlikely to be until 2024 at the earliest" that the conditions for a rate hike will be met. Instead Lowe said that meeting the conditions, which centre on wages growth being "materially higher", "still seems some way off." We see this as a further evolution of the RBA's forward guidance. Lowe's speech strengthened our conviction the yield target (YT) will not roll to the next bond, while we didn't see any particular clues about which option the RBA Board will choose on quantitative easing (QE)."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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