Australia: Slumbering rates outlook - AmpGFX

The market may be dismissing recent evidence of recovery in Australia as the narrative from local commentators is still negative – headwinds from household debt and savings, political leadership lacking, risks from Chinese financial stability, according to Greg Gibbs, Analyst at Amplifying Global FX Capital.  

Key Quotes

“Most do not see hikes coming into view.  However, recent business surveys and labour market indicators have picked up.  Even the labour costs indicator in the NAB business survey rose to a recent high this week.  No one thought a hike was coming into view for Canada less than two months ago, the market is too complacent about the risk in Australia.”