Institution View: If the Fed Cuts Rates Aggressively, the RBA's Hawkish Stance Will Be Heavily Impacted
Gold Finance reports that, according to institutional analysis, Australian bond traders have a lot to watch this week both domestically and internationally. The market is widely expecting the Federal Reserve's FOMC to begin cutting interest rates this week, with the real debate being the size of the cut. If the Fed cuts by 50 basis points, it could intensify attacks on the RBA's hawkish rhetoric, highlighting how the RBA is lagging behind a growing number of global central banks that are cutting rates.
The RBA has recently been criticized for its high interest rates "damaging the economy." On the domestic front, Australia's September employment figures will be released on Thursday. Economists expect steady job growth and a decline in the unemployment rate to 4.1%.