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1 Aug 2014
RBA's tone and bias to remain unchanged - BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch previewed the RBA meeting and Statement on Monetary Policy coming up next week.
Key Quotes:
“We believe the RBA has settled into its neutral bias and is comfortable with its current policy setting and no change in tone on the outlook is expected”.
“Its inflation forecasts will likely be revised lower as the carbon tax is abolished and those for GDP growth should remain unchanged”.
“Our forecast for monetary policy remains a middle ground between a dovish market and more hawkish economists. Yet we remain comfortable with our call that rates will be unchanged for an extended period. With the first hike of what will likely be a gradual tightening cycle expected in 1Q16”.
Key Quotes:
“We believe the RBA has settled into its neutral bias and is comfortable with its current policy setting and no change in tone on the outlook is expected”.
“Its inflation forecasts will likely be revised lower as the carbon tax is abolished and those for GDP growth should remain unchanged”.
“Our forecast for monetary policy remains a middle ground between a dovish market and more hawkish economists. Yet we remain comfortable with our call that rates will be unchanged for an extended period. With the first hike of what will likely be a gradual tightening cycle expected in 1Q16”.