Change in view from ANZ , were previously expecting 2 hikes from the Reserve Bank of Australia this year
Coming up today from Australia ...
- RBA quarterly Statement on Monetary Policy due today - preview
- Australian data due today - December housing finance - previews
Why the change from ANZ? They cite the jobs market, inflation and a reduction in financial instability risk
- RBA Governor Lowe says he needs to see further progress in reducing unemployment and having inflation return to the midpoint of the target range
- Once those conditions are met "at some point" (sheesh, Lowe no sounding confident is he?) "it will be appropriate for interest rates in Australia to also start moving up"
- Lowe reiterates ..."progress is likely to be only gradual .. lift in wage growth is likely to be necessary for inflation to average around the midpoint of the 2-3 per cent medium-term inflation target
- RBA is much more comfortable with the risks around financial stability, Governor Lowe says on balance ... situation looks less risky than it was a while ago
