Forex Flash: RBA policy and schedule in line with past agenda – Westpac
FXstreet.com (Barcelona) - No one should be second guessing the RBA's long-standing practice of not holding a policy meeting in early January. The ABS data calendar only returned to life this week and many Australian workplaces remain in mid-summer mode, with light staffing.
Meanwhile, the overwhelming media focus has been on the annual bushfire season, this year extending as far south as Tasmania. According to Westpac Markets Strategist Sean Callow, "It is hard to see how the RBA would have made the case for a change in rates if it had held a meeting this month." The December Board minutes revealed a discussion over holding steady before ultimately delivering the 25bp cut that had been widely expected in November, while the case for no change included "a slightly more positive tone" to global economic news, notably China where the RBA noted a "general stabilization in key commodity prices".
Meanwhile, the overwhelming media focus has been on the annual bushfire season, this year extending as far south as Tasmania. According to Westpac Markets Strategist Sean Callow, "It is hard to see how the RBA would have made the case for a change in rates if it had held a meeting this month." The December Board minutes revealed a discussion over holding steady before ultimately delivering the 25bp cut that had been widely expected in November, while the case for no change included "a slightly more positive tone" to global economic news, notably China where the RBA noted a "general stabilization in key commodity prices".
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