RBA statement coming up – ANZ

By FXStreet FXStreet (Guatemala) – Analysts at ANZ noted the forthcoming even for the day ahead of the US nonfarm Payrolls, that will steal the show for now.

Key Quotes:

“The RBA’s Statement on Monetary Policy (SoMP) always generates a significant degree of interest. This quarter is no different, with particular focus likely to be on the Bank’s inflation forecasts given the large undershoot in Q3. How this feeds into the Bank’s overall outlook for inflation will be a key part of determining the extent of its easing bias and hence the chances of near term rate cuts.”

“We think the RBA is likely to trim its Dec-15 and Jun-16 forecasts for underlying inflation by 1⁄4ppt, with the risks tilted towards an even larger downgrade for the Jun-16 number. In part this reflects base effects, but also the fact that the broad-based nature of the weakness in price pressures across both tradables and non-tradables evident in the Q3 CPI report suggests a very weak inflationary pulse.”

“For the growth forecasts, we do not expect much change, given Q2 GDP rose broadly in line with the Bank’s expectations. We do think, however, that the Jun- 16 numbers are a little low at 2-3%, especially given that Q3 …read more

Source:: FX Street