I’ve done well this morning, I think I’ve only mentioned the AUD once.
And I’ve even managed a chart on some other currency, euro something-or-other? Apparently its big in Germany or somewhere
OK, so back to the aussie …
(and ps. what I am posting here isn’t new news, more of a round up/summary)
JPMorgan’s chief economist in Australia, Stephen Walters:
“There are some fundamental problems in the economy. Yet, an inflation number like that makes it difficult for the Reserve Bank to do anything about those issues in the near term.”
- JPM are saying there will no rate cuts in 2014
Westpac’s chief economist Bill Evans:
“Weakness in domestic demand will contain the secondary impact on inflation from the weaker currency. The Reserve Bank is likely to require convincing evidence of our assessment of inflation risks before it opts for lower interest rates.”
- Evans goes on to say: The December quarter Inflation Report has triggered a delay to the resumption of rate cuts to August and November.
More:
- Merrill Lynch expect further easing in Q2 2014
- Also tipping a Q2 cut now are NAB, RBS
- While Westpac’s Evans is tipping for a Q3 cut, others are in saying there’ll be a hike in Q3 instead: analysts/economists from AMP, Arab Bank, CIMB and HSBC
- In the Q4 rate hike camp at this stage are CBA, St George Bank and TD Securities
As interesting note, out all by themselves is Goldman Sachs, still tipping a rate cut at the February meeting (Feb. 4). That’s a big call, little wonder they are out on their lonesome.
