Free Trial

VIEW: NAB "have changed the timing of our.......>

RBA: VIEW: NAB "have changed the timing of our previous rate call, bringing
forward the next cut to October, with a follow-up to occur in December.
Previously we expected a 25bp cut at each of the November and February board
meetings in combination with some indication of likely unconventional policies
going forward should more stimulus be needed. However, it appears that the
impact of income tax cuts has been muted, or at least failed to offset growing
weakness in the household sector. Furthermore, we previously anticipated some
further support from fiscal policy but now believe this is unlikely in the near
term. With monetary policy involving longer lags, we think the urgency to lower
rates sooner has increased. Longer term, we still think that unless there is
meaningful fiscal stimulus the RBA is likely to cut to 0.25% and adopt
unconventional policy by mid-2020."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



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.