Yesterday we got the release of the Royal Commission report into the banks.
Justin was all over it:
- Australia's Frydenberg: Message to financial sector is that misconduct must end
- Australia banking inquiry makes 76 recommendations; none on criminal charges
Heading into the report in previous months Australia bank shares had taken a caning. As I suggested yesterday though it was case of 'buy the fact'.
And, something to watch … which is rumours in the market that there is more to the rise in bank stocks than just the RC … that maybe some bank funding pressures will be relieved today … by an RBA rate cut! That ain't gonna happen, but a bit of scuttlebutt gossip woudn't surprise me.
AUD is already losing a wee bit of ground (ps. it looks dramatic but check the scale, small move only):
What will the RBA do today? Previews posted already:
- In February 2015, the RBA surprised with a rate cut. What about today? (spoiler, No)
- "AUD: RBA unlikely to match market pessimism" - RBA preview
- AUD traders - RBA preview - and where to for the AUD
- AUD traders - RBA meet Tuesday 5 February 2019 , preview
- RBC - Reserve Bank of Australia first monetary policy meeting for 2019 is tomorrow - preview
- Barclays on the Reserve Bank of Australia
- preview of the Reserve Bank of Australia meeting on Tuesday February 5 via Capital Economics
