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2 Apr 2014
RBA to raise rates in H1 2015 - Nomura
FXStreet (Bali) - Nomura Economists share their view on Tuesday's RBA monetary policy statement, noting that the central bank is expected to remain on hold for the rest of the year, although rate hikes are projected in the first half of 2015.
Key Quotes
"Overall, today‟s RBA statement contains a slightly rosier outlook for the economy at the margin, but, given the long lead time for any changes to capex, signals that monetary policy remains on hold."
"The absence of alarm or discomfort over the level of the exchange rate suggests that the RBA‟s own view of a declining exchange rate over time remains in place."
"We maintain our view that monetary policy remains on hold over the course of 2014, and we look for the first rise in cash rate sometime in the first half of 2015."
Key Quotes
"Overall, today‟s RBA statement contains a slightly rosier outlook for the economy at the margin, but, given the long lead time for any changes to capex, signals that monetary policy remains on hold."
"The absence of alarm or discomfort over the level of the exchange rate suggests that the RBA‟s own view of a declining exchange rate over time remains in place."
"We maintain our view that monetary policy remains on hold over the course of 2014, and we look for the first rise in cash rate sometime in the first half of 2015."