Reserve Bank of Australia Rate Unchanged at 1.5%

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    National Australia Bank revising Reserve Bank of Australia monetary policy outlook

    From expecting 2 more cuts to now:
    25bp rate hike in August 2018
    25bp rate hike in November 2018
    And two further in 2019

    NAB says
    Stronger employment,
    GDP and investment data have seen us revise our forecasts lower for unemployment, and slightly increase our forecasts for GDP growth and inflation
    While we remain cautious about aspects of the economic outlook, we now believe the labour market will strengthen enough to allow the RBA to remove some of the emergency stimulus currently in place.


    Reserve Bank of Australia may fall into the same trap as Canada
    trying to make a rising rate environment when the Fed is not

    raising rates when the Fed is not puts export currencies in a bad spot
    while unlikely to induce a recession, investments will look elsewhere


    One gets the sense the Fed at one of the G-20 meeting saddled up and said what they would do and never have putting Australia and Canada in a bind but hey they would never do that would they.

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