2216 GMT - Recent AUD/USD weakness has been cited as a headwind to the Reserve Bank of Australia cutting interest rates in February. Still, the central bank will probably press ahead with a reduction regardless, says Ben Jarman, chief economist at JP Morgan, Australia. The movement in the AUD trade-weighted index usually has a greater impact on imported inflation than bilateral rates. Empirically the pass-through from changes in the TWI to inflation is quite small, Jarman adds. All else being equal, RBA rules of thumb imply the decline in the TWI since November should only lift CPI by 0.2 percentage points over a few years, he says. Also, the rise in bond yields recently has countered some of the slippage in financial conditions tied to a weaker exchange rate, Jarman adds. (james.glynn@wsj.com; @JamesGlynnWSJ)
(END) Dow Jones Newswires
January 19, 2025 17:16 ET (22:16 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。