RBA to Hold Rates While Other Banks Grow Increasingly Hawkish

  • Monday, October 1, 2018

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The Most Important Central Bank Releases This Week
central bank communications analytics research

The only G10 central bank with a policy meeting scheduled for this week is the RBA, which is likely to hold rates and issue neutral remarks. The Aussie economy remains on firm footing, but trade concerns have cast a dark cloud over future growth and likely pushed any future tightening to 2019.

Unlike their Aussie counterparts, Fed policymakers raised rates last week. This week, nine policymakers will deliver speeches that will likely indicate support for another 25bps rate hike before year-end. The two speeches by ECB policymakers are unlikely to be as direct, though they may be similarly hawkish in support of European policymakers’ goal of further tightening policy. In Canada, Governor Poloz indicated his preference for further tightening just last week, so it is unlikely that his fellow policymaker, Timothy Lane, will deviate much from that script in his speech this week.

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

The Prattle Team

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