This time it's the National Australia Bank with a quickie preview of what to watch for in the Reserve Bank of Australia's Statement on Monetary Policy today
- We do not expect to see material changes in the growth outlook
- We will however be alert to how they see the outlook for inflation in 2016 (and beyond
- August forecasts only depicted a range of 2 to 3%. We expect that to be honed down to 2-2½% ... not too high as to be unrealistic in the light of this past quarter's outcome
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Westpac's preview is here
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It seems to me the market is looking for downward inflation revisions and, to a lesser extent, downward growth revisions
It also seems to me the market is a touch short going into the Statement
So ... I reckon the danger is for a little squeeze higher. I don't think it'll be much as what we are all really waiting for is the NFP much later today.
Thoughts welcome!
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ps. Here's a little about the RBA's Statement on Monetary Policy ...
- The Statement is around 60 or more pages
- Gives the bank's assessment of the domestic and global economy
- Gives a fuller description of monetary policy guidance
- Gives inflation and growth forecasts
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And recently its included a sentence or two on the expected impact of a Federal Reserve rate hike ... a lonely, forlorn and forsaken sentence it is :-D
