09 Jul 2013

“The falling AUD is playing an important role in easing financial conditions in the local markets, allowing the RBA to sit on the interest rate front for the moment.

However,  that said, the common view is the RBA will eventually reach the view that further interest rate accommodation would be required by the economy, in spite of the weaker AUD.

With the third quarter looming and thereafter, official interest rates to continue falling in 2014 as mining investment winds back.”

An excerpt from the Bell FX Currency Outlook.

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