Central Banks

Citi expect the Reserve Bank of Australia on hold in February, first hike in May

By adminPosted on
Time to Read:-words

Last week I posted on some shifting forecasts for the RBA:

ANZ expects a 25bp interest rate cut at the Reserve Bank of Australia February meeting

  • due to weaker inflation figures in Q4

Citi are unmoved:

  • expect the first RBA rate cut at the May meeting
  • expect 75bp of cuts this year
  • RBA on hold for longer relative to other central banks should mean outperfomance for the AUD
  • target AUD/NZD to 1.13/1.14

This article was written by Eamonn Sheridan at www.forexlive.com. Source