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Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, Commodities

The Reserve Bank of Australia features prominently this week with their regular monthly Board meeting to be held on Tuesday. While most analysts agree there will be no change to rates, there is a possibility that the accompanying commentary will shift to a less specific description compared to that which has been made (virtually unchanged) for the past six Board meetings.

Some argue that the phrase “the most prudent course is likely to be a period of stability in interest rates” may be amended or omitted. This is based on recent comments by the RBA Governor where he noted that “long before any thoughts were to be given to an increase in rates, it would probably be sensible for the Board to cease references to a future period of stability” and also mentioned that “we’ll probably think about shifting (commentary) to something not quite so specific”. This is supported by the fact that the RBA’s quarterly Statement on Monetary Policy is also out this Friday.

Source: Rural Bank


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