Reserve Bank of Australia outlook from ANZ
- Says RBA Bias Index indicates that RBA statements have become progressively hawkish over this year.
ANZ have doubts on the path implied by their index:
- the Bias Index is capturing the RBA's increased focus on financial stability
- With macro prudential policy another tool for dealing with concerns over financial stability, perhaps we should heavily discount the rate implications of the rising RBA Bias Index.
But, then again ...
- The only problem with this is that the Bank has made it clear that concerns over financial stability have impacted the setting of the cash rate already. So these concerns do matter for the setting of interest rates.
ANZ say they are awaiting now the minutes of the Bank's September board meeting to shed more light
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Earlier in the week, NAB jumped to a rate hike bias:
