Comments from Australian broker Commsec on the Reserve Bank of Australia December meeting Minutes
Bolding is mine:
- No significant surprise in views
- Board Members were slightly more upbeat on the prospects for the Australian economy
- Continued to reiterate firmer growth over the next two years
- No doubt the weaker Australian dollar is supporting a rebalancing and helping to offset the weakness in mining investment
- The more upbeat view came ahead of the stronger employment numbers
- If the anticipated lift in activity does not take place, then this could prompt the Board to assess the need for more stimulus
Commsec outlook for the RBA:
- CommSec expects no change to interest rate settings in 2016, although the risks lie with another rate cut given the low inflation outcomes
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I reckon further rate cuts are a long way off, if at all. We'll see how 2016 develops, but from here; rate cuts? Nope.
