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Sep 2, 2014
RBA to stay on hold, rate cuts in next 12 months not ruled out - NAB
FXStreet (Bali) - NAB Economists sees no change in monetary policy by the RBA later today, adding that if the Central Bank needs to do anything in the next year it is more likely to be a cut.
Key Quotes
"The RBA is sure to leave the cash rate at 2.5% and almost certain to repeat that “On present indications, the most prudent course is likely to be a period of stability in interest rates.”
"Of course, this prudent course remains a balancing act between an $A that is too high for their liking and interest rates that are too low. They’d prefer a different mix for sure."
"NAB still sees the RBA staying on hold as they wait for the mix of forces on the economy to resolve – this could take some time. We have also been warning that if the RBA need to do anything in the next year it is more likely to be a cut. On balance, recent developments have reduced the risk they may need to cut again and language tweaks in Tuesday’s Statement should reflect this."
Key Quotes
"The RBA is sure to leave the cash rate at 2.5% and almost certain to repeat that “On present indications, the most prudent course is likely to be a period of stability in interest rates.”
"Of course, this prudent course remains a balancing act between an $A that is too high for their liking and interest rates that are too low. They’d prefer a different mix for sure."
"NAB still sees the RBA staying on hold as they wait for the mix of forces on the economy to resolve – this could take some time. We have also been warning that if the RBA need to do anything in the next year it is more likely to be a cut. On balance, recent developments have reduced the risk they may need to cut again and language tweaks in Tuesday’s Statement should reflect this."