Barclays: What we anticipate from the November RBA assembly

Barclays expects the RBA to undertake a hawkish tone at its November assembly, reinforcing the message that price cuts are unlikely in 2024. With the Australian economic system working above potential and core inflation nonetheless above goal, the RBA is anticipated to sign a gentle path for now, whereas offering up to date financial forecasts.

Key Factors:

• Hawkish Stance Maintained: Barclays anticipates the RBA will convey that price cuts will not be anticipated till a minimum of 2025.
• Above-Potential Economic system: The Australian economic system stays above potential, justifying a cautious method to easing.
• Core Inflation Issues: Core inflation stays outdoors the RBA’s goal vary, reinforcing the necessity for a hawkish tone.
• Assertion on Financial Coverage: The assembly can be accompanied by an up to date Assertion on Financial Coverage, providing revised financial forecasts.

Conclusion:

Barclays initiatives a gentle coverage stance from the RBA, with a concentrate on sustaining a hawkish message amid above-potential financial situations and chronic inflation. The up to date financial forecasts will doubtless reinforce expectations that price cuts are off the desk for the rest of 2024.

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This text was written by Adam Button at www.ubaidahsan.com.



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