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17 Dec 2013
Flash: RBA minutes will retain the key phrase - Westpac
FXstreet.com (Bali) - The RBA releases the minutes from the 3 Dec Board meeting at 00.30 GMT, notes Sean Callow, FX Strategist at Westpac, who gives his take below.
Key Quotes
"The statement accompanying the steady hand at a 2.5% cash rate was almost identical to Nov’s. The minimal change was unusual, suggesting a firm message that nothing of substance had changed over the month."
"This in turn suggests that the minutes will retain the key phrase that it was prudent to hold the cash rate steady but “but not to close off the possibility of reducing it further should that be appropriate to support sustainable growth”."
"Any change to this would produce a significant AUD response. The standard reference on the AUD is “a lower level of the exchange rate would likely be needed to achieve balanced growth.”"
"About 15 minutes prior to the minutes, RBA Assistant Governor (Financial Markets) Guy Debelle speaks at a conference."
Key Quotes
"The statement accompanying the steady hand at a 2.5% cash rate was almost identical to Nov’s. The minimal change was unusual, suggesting a firm message that nothing of substance had changed over the month."
"This in turn suggests that the minutes will retain the key phrase that it was prudent to hold the cash rate steady but “but not to close off the possibility of reducing it further should that be appropriate to support sustainable growth”."
"Any change to this would produce a significant AUD response. The standard reference on the AUD is “a lower level of the exchange rate would likely be needed to achieve balanced growth.”"
"About 15 minutes prior to the minutes, RBA Assistant Governor (Financial Markets) Guy Debelle speaks at a conference."