RBA to Hold Rates While ECB Expresses European Unity

  • Monday, June 4, 2018

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The Most Important Central Bank Releases This Week
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The RBA policy meeting is likely to be the biggest market mover of the week, but recent market and political volatility will draw attention to speeches from ECB policymakers as well. RBA policymakers will likely hold rates due to inflation remaining below target and showing no signs of rising anytime soon. The ECB speeches will likely attempt to calm political fears by continuing to declare eurozone strength and perhaps reiterating the bank’s goal to reduce QE later this summer.

The inflation attitudes survey released by the BOE this week may shed light on when policymakers anticipate raising rates, especially given the downturn in inflation this spring. Meanwhile, BOC policymakers continue to appear eager to raise rates despite renewed trade tensions and ambiguous economic conditions. The BOC’s financial system review released Thursday may signal whether a July hike is likely. At the Riksbank, Stefan Ingves may use his speech to backtrack on the bank’s recent extremely dovish position, although he will likely stop short of renewing calls for a rate hike later this summer.

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The Prattle Team

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