RBA will announce rate decision tomorrow.
Exerpts from the Westpac report:
- The Reserve Bank Board meets next week on March 6. Of course we expect there will be no change in the overnight cash rate.
- We also do not expect to see any significant change in the Governor’s rhetoric from last month.
- Overall, we are expecting a cumulative fall (in USD’s) in Australia’s Commodity Price Index of around 25% between June 2018 and December 2019.
- Readers will be aware that Westpac expects a considerable widening in the negative Australia/US interest rate differential as the FEDERAL RESERVE continues to raise rates and the RBA remains on hold.
- Readers should be aware that Westpac has reviewed its currency forecasts and, while continuing to see an AUD low of USD 0.70 in 2019, has pushed out the timing to September 2019 from March.
Details in Australia & New Zealand Weekly: RBA on Hold, AUD to Weaken through 2018 and 2019
Italy Services PMI down to 55.0 vs exp 57.3, Slower growth compared to January recorded
Italy Services PMI down to 55.0, vs exp 57.3, from prior 57.7.
Key findings:
increase
Paul Smith, Director at IHS Markit which compiles the Italy Services PMI survey, said:
“Following a stellar start to the year, the Italian service sector saw growth weaken in February but sustained at a decent clip. Midway through the first quarter of 2018 the economy is firmly on course to deliver a similar sized level of quarterly GDP growth to those seen over the past year or so.
“Demand conditions remain favourable, and rising workloads mean that companies continue to take on additional workers, albeit in a relatively careful and considered manner.
“Recruitment is also being supported by positive expectations for growth, with service providers retaining an optimistic outlook and indicating plans to raise investment levels over the coming 12 months.”
Full release.