Westpac Financial Markets Strategy team on the Reserve Bank of Australia yesterday. This in brief:
- The RBA meeting was seen as slightly hawkish, a slower return to
the inflation target, as it remains more persistent and ‘approaches’
rather than ‘hits’ the target. - OIS markets, which have completely
changed their risk profile in the last few weeks, shifted 2-3bp higher
but have a cut priced for December 2024. - Further out the curve, bill
futures moved by 20-25bp from high to low, though only a small
amount came after the RBA meeting. - In the RBA press conference, Governor Bullock reiterated the
board did consider a rate hike for the August meeting as well as the
result being a hold. She said a rate cut is not on the agenda in the
near term.
Good stuff.
ICYMI, Justin was all over the RBA yesterday:
- RBA leaves cash rate unchanged at 4.35%, as expected
- RBA governor Bullock: Inflation progress has been slow for a year now
- RBA governor Bullock: A rate cut is not on the agenda in the near-term
This article was written by Eamonn Sheridan at www.forexlive.com. Source