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RBA could remain ‘on hold’ in 2016 – Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - Bill Evans, Chief Economist at Westpac Macro, sees the RBA keeping its monetary stance unchanged during the next year,

    Key Quotes

    “In conclusion we remain comfortable with our current view that the RBA will keep rates on hold through 2016. We are not expecting a repeat of the sharp 'about face' we saw this time last year”.

    “But, undoubtedly downside risks are to the fore. Contracting domestic demand in the September quarter; falling iron ore prices; negative investment plans; and downgrades to GDP growth are all comparable with the main motivations behind the sharp reversal in policy in February this year”.

    “Markets are currently pricing only a 32% chance of a move in February (down from 120% a month ago). We can be certain of one thing: expect more volatility as the rate debate extends into 2016”.
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