24 Apr 2014
RBA hiking cycle to start in 2015 - Nomura
FXStreet (Bali) - Charles St-Arnaud and Martin Whetton, Economist and Rates Strategist at Nomura, continue to expect the RBA hiking cycle to start in 2015 despite the Q1 CPI miss yesterday.
Key Quotes
"In terms of markets, AUD reacted to the lower-than-expected number with a fall of around –three quarters of a cent, moving from 0.9375 to 0.9300."
"Rates markets pared back expectations of earlier rate hikes, with the OIS market 2-4bp lower in yield for late 2014, early 2015 dates. The first full hike of 25bp is priced for June 2015."
"In terms of trades, we hold our view that the market can continue to price more hikes into the OIS curve later in 2014. Our expectation for the hiking cycle to start in 2015 remains unchanged."
Key Quotes
"In terms of markets, AUD reacted to the lower-than-expected number with a fall of around –three quarters of a cent, moving from 0.9375 to 0.9300."
"Rates markets pared back expectations of earlier rate hikes, with the OIS market 2-4bp lower in yield for late 2014, early 2015 dates. The first full hike of 25bp is priced for June 2015."
"In terms of trades, we hold our view that the market can continue to price more hikes into the OIS curve later in 2014. Our expectation for the hiking cycle to start in 2015 remains unchanged."