RBC update their view on the Reserve Bank of Australia
- Push back timing of expected rate hike to Q4 of 2019
- RBC then expect another hike in Q1 of 2020
- After that, RBA will sit at 2% for some time
RBC add …
- we admit to thinking about dropping these hikes altogether
- The longer the RBA sits at 1.50%, the less sure we are about the direction of the next move
- especially if global activity turns more modest in H2 2019 and 2020
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Meanwhile AUD/USD is dribbling off a few more tics. We have had more political moves, the fin min spitting the dummy and tendering his resignation, along with another 2 ministers. They support the challenger Peter Dutton