RBA, RBNZ to Hold Rates As Global Dovish Shift Continues

  • Monday, August 5, 2019

Welcome to “The Cyborg Analyst” by Prattle. This report provides weekly, quantitative insights on G-10 currency central banks.

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August is undoubtedly the quietest time of year in global central banking, meaning this relatively slow week will likely be the busiest of the month. On the heels of the Fed’s hawkish cut, the RBA and RBNZ are both likely to hold rates at their respective policy meetings this week. Of the two, the RBA is likely to sound more dovish in preparation for further rate cuts, while the RBNZ will likely need more convincing to engage in further stimulus. This week’s release of the BOJ Summary of Opinions will likely highlight the bank’s recent shift from dovish to neutral, an inversion of most other central banks’ increasingly dovish tone. Perhaps the biggest dovish shift in recent weeks has come from the BOE, where policymakers sound increasingly concerned about Brexit. This week’s Asset Purchase Facility Quarterly Report is likely to reflect their preparations for stimulus to combat the adverse effects of Brexit.

This is an abbreviated version of the Cyborg Analyst. The full weekly report contains detailed analysis based on Prattle’s Central Bank Analytics.