A round-up of expectations from the RBA today

Goldman Sachs:

  • expect RBA on hold today
  • Likely to cut in March

B of A:

  • expect RBA on hold today
  • likely to maintain its strong language on the exchange rate in this week’s policy statement – citing it as “uncomfortably high” and saying a decline is “needed”

Citi:

  • “expect the RBA to turn more cautious on the economic outlook in 2014, we suspect that markets maybe running a bit ahead of themselves. As these expectations are corrected, AUD could squeeze higher vs. EUR.”

HSBC:

  • expect RBA on hold today
  • RBA unlikely to need to cut rates further in this easing phase

Barclays

  • expect RBA on hold today
  • do not think the RBA will repeat the governor’s threat of large-scale FX intervention in the rate announcement, although it is likely to make noises about how a lower exchange rate can help

Credit Agricole:

  • RBA is determined to talk down the currency in pretty much anyway it could, including the possibility of currency intervention.

efx