6 May 2014
RBA statement unlikely to offer major surprises - RBS
FXStreet (Bali) - Today's RBA policy statement is likely to be similar in overall tone to recent statements, notes Greg Gibbs, FX Strategist at RBS.
Key Quotes
In those the RBA repeated for several months that on present indications, "the most prudent course is likely to be a period of stability in interest rates."
Given that the AUD exchange rate is little changed over the last month it may repeat its comment from last month that, "The decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy, but less so than previously as a result of the rise over the past few months. The exchange rate remains high by historical standards."
Key Quotes
In those the RBA repeated for several months that on present indications, "the most prudent course is likely to be a period of stability in interest rates."
Given that the AUD exchange rate is little changed over the last month it may repeat its comment from last month that, "The decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy, but less so than previously as a result of the rise over the past few months. The exchange rate remains high by historical standards."