29 Jan 2015
RBNZ stance raises stakes for RBA next week - RBS
FXStreet (Bali) - According to RBS FX Strategists, the RBNZ’s decision, in particular, has likely raised the stakes for the RBA’s next meeting in early February.
Key Quotes
"Yesterday the RBNZ became the latest central bank in a commodity exporting economy to take a dovish turn by signaling steady interest rates for the time being while also adding that rate moves, either up or down, will depend on the incoming data."
"The RBNZ’s decision, in particular, has likely raised the stakes for the RBA’s next meeting in early February, and the rates market shows an essentially 50/50 probability of a rate cut next week. Fourth-quarter CPI was a bit stronger than anticipated in Australia, but given the strong interest in the February 2nd decision, plenty of attention will be paid to the latest PPI and private sector credit growth figures."
Key Quotes
"Yesterday the RBNZ became the latest central bank in a commodity exporting economy to take a dovish turn by signaling steady interest rates for the time being while also adding that rate moves, either up or down, will depend on the incoming data."
"The RBNZ’s decision, in particular, has likely raised the stakes for the RBA’s next meeting in early February, and the rates market shows an essentially 50/50 probability of a rate cut next week. Fourth-quarter CPI was a bit stronger than anticipated in Australia, but given the strong interest in the February 2nd decision, plenty of attention will be paid to the latest PPI and private sector credit growth figures."