Rumble in Martin Place?

Glenn Stevens delivered a really intriguing speech this afternoon in Brisbane to the Economic Society of Australia. It is intriguing in so far as that at first blush my read is that this speech is the child of the May Statement on Monetary Policy and that either the data or the RBA Board intervened in the mean time to keep the officials from hiking at last week’s meeting.

My money is on a bit of both but from the speech I’d say it was the Board.

I’ll post my full thoughts tomorrow morning as I’m not exactly sure what to make of this yet but here is a link to the speech anyway.

For what it’s worth as I write the markets aren’t too worried about what he has said today, I think favouring the ongoing run of weak data and today’s Consumer Sentiment outcome. There is only 15 basis points of tightenings priced in over the next year,  3 year swaps up only a few points to 5.1525% and the Aussie Dollar up a smidge at 1.0699. Probably the AUD could move higher on the back of this speech and the reinforcement of medium term positives and a tightening bias if Europe keeps its act together tonight.

This blog is for information only and does not constitute advice. Neither Greg McKenna nor Lighthouse Securities has taken your personal circumstances, objectives or financial situation into account. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.

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  1. Wednesday Thought bubbles, on the RBA, Greece and Markets | Lighthouse Securities - June 22, 2011

    […] this scenario.” Staff forecasts? Perhaps there is a split between the Board and the Staffers as we suggested after Governor Stevens recent speech after […]

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