HSBC is not expecting a proactive RBA
Comments from HSBC on the Reserve Bank of Australia
RBA appears unconcerned by signs that the ongoing deceleration in the flow of credit is hitting domestic demand
RBA has now capitulated from its long-held view that the next move is "more likely to be an increase rather than a decrease,"
- it maintains that the case for easing would require a "sustained increase in the unemployment rate"
In the case of a credit squeeze, the unemployment rate tends to be a lagging indicator, meaning a proactive easing of policy is unlikely
Mmmm, yeah I reckon so.
I have posted a few times in past days that the RBA has switched to a neutral bias, certainly not an easing one. Plenty of banks making the same sort of point.