29 Jan 2015
Pressure mounts on RBA to cut rates next week – MP
FXStreet (Barcelona) - Stuart McPhee of MarketPulse, comments that rising disinflation as a result of soft commodities is pressuring RBA to cut rates in its next meeting.
Key Quotes
“Pressure is mounting on Australia’s central bank to join developed-market peers in easing monetary policy as falling oil prices and stagnant economies spread disinflation.”
“The key driver for these central banks is increasing downside risks to global inflation and growth,” said Su-Lin Ong, head of Australian economic and fixed-income strategy at Royal Bank of Canada in Sydney. “Canada talked about an insurance cut and pointed at energy, you substitute that in Australia for iron ore and dairy in New Zealand. It’s no coincidence that the commodity nations’ central banks are shifting rapidly in policy assessments.”
Key Quotes
“Pressure is mounting on Australia’s central bank to join developed-market peers in easing monetary policy as falling oil prices and stagnant economies spread disinflation.”
“The key driver for these central banks is increasing downside risks to global inflation and growth,” said Su-Lin Ong, head of Australian economic and fixed-income strategy at Royal Bank of Canada in Sydney. “Canada talked about an insurance cut and pointed at energy, you substitute that in Australia for iron ore and dairy in New Zealand. It’s no coincidence that the commodity nations’ central banks are shifting rapidly in policy assessments.”