Back
9 Dec 2015
RBA in a conundrum - HSBC
FXStreet (Guatemala) - Analysts at HSBC explained the RBA's conundrum.
Key Quotes:
However, the RBA faces an increasing challenge. To the extent that its apparent reluctance to consider rate cuts is holding up the AUD, it may also be weighing on improvements in competitiveness that a lower currency delivers.
If the resources sector weakens further, more growth is likely to be needed in the non-mining sectors, which may require looser financial conditions."
Key Quotes:
However, the RBA faces an increasing challenge. To the extent that its apparent reluctance to consider rate cuts is holding up the AUD, it may also be weighing on improvements in competitiveness that a lower currency delivers.
If the resources sector weakens further, more growth is likely to be needed in the non-mining sectors, which may require looser financial conditions."