RBA forward guidance (assuming they have much of a clue what’s ahead)

Comparing the final paragraph of the Governor’s statement, which is where plans for the future tend to appear (forward guidance … FWIW!)

I’m not reading too much into the differences … probably the first few words are the key, from “some further tightening” to “whether further tightening’. The November use of “whether” would seem less strong in terms of more hikes to come. That is if you view the RBA as having much of a clue about what is ahead. I don’t think they do. Me either. As someone very wise (Thomas Carlyle) once said:

  • Our main business is not to see what lies dimly at a distance, but to do what lies clearly at hand.

Data dependence, innit?

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