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11 May 2015
RBA SoMP to weight on AUD - RBS
FXStreet (Bali) - According to Greg Gibbs, FX Strategist at RBS, the dovish tone in last Friday's RBA SoMP should weigh on the AUD and tend to rekindle rate cut expectations diminished.
Key Quotes
"The RBA Statement on Monetary Policy is more dovish on growth and inflation than the previous February statement and sits bizarrely at odds with the press release on monetary policy released on Tuesday."
"The RBA has copped criticism from some commentators for sending a confusing message in its Tuesday statement, and now it appears that criticism is justified given the more dovish tones in this quarterly statement on monetary policy."
"It appears that the RBA still has a significant easing bias, but its intentions on rates are less clear. The tone of this report should weigh on the AUD and tend to rekindle rate cut expectations that had diminished this week."
Key Quotes
"The RBA Statement on Monetary Policy is more dovish on growth and inflation than the previous February statement and sits bizarrely at odds with the press release on monetary policy released on Tuesday."
"The RBA has copped criticism from some commentators for sending a confusing message in its Tuesday statement, and now it appears that criticism is justified given the more dovish tones in this quarterly statement on monetary policy."
"It appears that the RBA still has a significant easing bias, but its intentions on rates are less clear. The tone of this report should weigh on the AUD and tend to rekindle rate cut expectations that had diminished this week."