Free Trial

VIEW: RBC Remove Call For Another Hike

RBA

RBC note that “most of the key measures and detail in today’s Q1 CPI were softer in our view moderating in both quarterly and y/y terms although they remain elevated and there is clearly some stickiness in service sector inflation. For an RBA that is reluctant to tighten much further and prepared to tolerate higher inflation to preserve the labour market gains, today’s data provide an excuse to stay on hold and we remove our final 25bp May hike. The onus remains on the key data – household consumption, labour market and inflation – to weaken further and accordingly, a tightening bias is likely to linger for some time. We note that turning points in economic (and policy) cycles can be mixed for a period and we suspect that is currently where we are at.”

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.