UBS Asset Sees China and Jobs Driving RBA Rather Than Inflation
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Central bank could cut rates twice more in 2016: Anderson
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Inflation allows easing, but won’t be the catalyst, she says
UBS Asset Management sees the yield premium on Australian bonds shrinking as the central bank cuts its benchmark interest rate. They aren’t that focused on inflation though, for them the key things to watch are China and jobs.
A slowdown was already on the cards for Australia’s largest trading partner and the fallout from Britain’s vote to leave the European Union vote has magnified risks for China, according to Anne Anderson, who oversees about $20 billion as the money manager’s head of Asia-Pacific fixed income. She said the labor market’s also probably not as good as the Reserve Bank of Australia would like and, while a rate cut is most probable in August, there’s a possibility of a move as soon as next week if markets haven’t calmed…
UBS Asset Sees China and Jobs Driving RBA Rather Than Inflation
