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3 Mar 2015
RBA enters a ‘wait and see’ stance – TDS
FXStreet (Barcelona) - The TD Securities Team reviews the RBA’s rate decision and data released in Australia today, and further adds that the central bank has entered in a ‘wait and see’ approach, but maintains a clear easing bias.
Key Quotes
“The RBA kept rates on hold as per the house view at 2.25%. The communiqué was rather short, likely masking what was a lively debate to cut again (the RBA has a history of consecutive adjustments to the cash rate).”
“We read a ‘wait and see’ stance into today’s message, despite the fact that an explicit easing bias was introduced.”
“We can only surmise that the surge in house prices and auction clearance rates stayed the RBA’s hand today, providing an offset to what was a dismal capex report last week and the surprise jump in the unemployment rate to 6.4% a few weeks ago.”
“Australian data were better than expected. Building Approvals for Jan jumped +7.9%/mth, reaffirming the housing market remains hot.”
“Net exports add +0.7% pts to GDP and the current account came in at a deficit of -$AU9.6b vs exp of -$AU11b."
“We stay with Q4 GDP +0.8%/qtr, +2.7%/yr (mkt a weaker +0.5%).”
Key Quotes
“The RBA kept rates on hold as per the house view at 2.25%. The communiqué was rather short, likely masking what was a lively debate to cut again (the RBA has a history of consecutive adjustments to the cash rate).”
“We read a ‘wait and see’ stance into today’s message, despite the fact that an explicit easing bias was introduced.”
“We can only surmise that the surge in house prices and auction clearance rates stayed the RBA’s hand today, providing an offset to what was a dismal capex report last week and the surprise jump in the unemployment rate to 6.4% a few weeks ago.”
“Australian data were better than expected. Building Approvals for Jan jumped +7.9%/mth, reaffirming the housing market remains hot.”
“Net exports add +0.7% pts to GDP and the current account came in at a deficit of -$AU9.6b vs exp of -$AU11b."
“We stay with Q4 GDP +0.8%/qtr, +2.7%/yr (mkt a weaker +0.5%).”