RBA will announce rate decision tomorrow.
Exerpts from the Westpac report:
- The Reserve Bank Board meets next week on March 6. Of course we expect there will be no change in the overnight cash rate.
- We also do not expect to see any significant change in the Governor’s rhetoric from last month.
- Overall, we are expecting a cumulative fall (in USD’s) in Australia’s Commodity Price Index of around 25% between June 2018 and December 2019.
- Readers will be aware that Westpac expects a considerable widening in the negative Australia/US interest rate differential as the FEDERAL RESERVE continues to raise rates and the RBA remains on hold.
- Readers should be aware that Westpac has reviewed its currency forecasts and, while continuing to see an AUD low of USD 0.70 in 2019, has pushed out the timing to September 2019 from March.
Details in Australia & New Zealand Weekly: RBA on Hold, AUD to Weaken through 2018 and 2019
