August 06, 2024 at 11:26PM
Westpac Financial Markets Strategy team on the Reserve Bank of Australia yesterday. This in brief:
The RBA meeting was seen as slightly hawkish, a slower return to
the inflation target, as it remains more persistent and ‘approaches’
rather than ‘hits’ the target.
OIS markets, which have completely
changed their risk profile in the last few weeks, shifted 2-3bp higher
but have a cut priced for December 2024.
Further out the curve, bill
futures moved by 20-25bp from high to low, though only a small
amount came after the RBA meeting.
In the RBA press conference, Governor Bullock reiterated the
board did consider a rate hike for the August meeting as well as the
result being a hold. She said a rate cut is not on the agenda in the
near term.
Good stuff.
ICYMI, Justin was all over the RBA yesterday:
RBA leaves cash rate unchanged at 4.35%, as expected
RBA governor Bullock: Inflation progress has been slow for a year now
RBA governor Bullock: A rate cut is not on the agenda in the near-term
This article was written by Eamonn Sheridan at www.forexlive.com.
