2 Dec 2014
RBA finishing another year at 2.5% - ANZ
FXStreet (Bali) - Savita Singh, Economist, and Felicity Emmett, Senior Economist, at ANZ, offer their take on today's RBA policy outcome.
Key Quotes
Today’s RBA post-meeting statement was very similar to recent months’. This was broadly expected given Governor Glenn Stevens and Assistant Governor Phil Lowe had both spoken over the past fortnight and provided little indication the Bank’s characterisation of the economy had changed."
"The Board did acknowledge he ‘significant declines in key commodity prices in recent months’, but any comments about the recent lift in business conditions and non-mining business investment were absent. The Board did continue to note that “the most prudent course is likely to be a period of stability in interest rates.”
"The rhetoric on the exchange rate was strengthened a touch, from the AUD “was offering less assistance than would normally be expected in achieving balanced growth in the economy” to “a lower exchange rate is likely to be needed to achieve balanced growth in the economy”
Key Quotes
Today’s RBA post-meeting statement was very similar to recent months’. This was broadly expected given Governor Glenn Stevens and Assistant Governor Phil Lowe had both spoken over the past fortnight and provided little indication the Bank’s characterisation of the economy had changed."
"The Board did acknowledge he ‘significant declines in key commodity prices in recent months’, but any comments about the recent lift in business conditions and non-mining business investment were absent. The Board did continue to note that “the most prudent course is likely to be a period of stability in interest rates.”
"The rhetoric on the exchange rate was strengthened a touch, from the AUD “was offering less assistance than would normally be expected in achieving balanced growth in the economy” to “a lower exchange rate is likely to be needed to achieve balanced growth in the economy”