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25 Sep 2015
Central banks in focus - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted that RBA Governor Stevens last week indicated that he is currently happy with the level of interest rates.
Key Quotes:
"However, the door to further easing has not been shut."
"Given the risk of further headwinds from China we continue to expect the RBA will cut rates again this cycle. By contrast we expect the BoC to remain on hold. Recent Canadian trade data has been better than expected, no doubt supported by expanding growth in the US."
"While we expect the CAD to outperform the AUD and the NZD into next year, we still see room for the CAD to slip vs. the USD and the GBP. While the first rate hike from the Fed and the BoE has likely been delayed, it remains the case that these are the only two G10 central banks to have prepared the markets for a potential policy hike."
Key Quotes:
"However, the door to further easing has not been shut."
"Given the risk of further headwinds from China we continue to expect the RBA will cut rates again this cycle. By contrast we expect the BoC to remain on hold. Recent Canadian trade data has been better than expected, no doubt supported by expanding growth in the US."
"While we expect the CAD to outperform the AUD and the NZD into next year, we still see room for the CAD to slip vs. the USD and the GBP. While the first rate hike from the Fed and the BoE has likely been delayed, it remains the case that these are the only two G10 central banks to have prepared the markets for a potential policy hike."