Australia: Hanging in the balance, RBA more explicit? - ANZ

The ANZ Research Team notes that it appears Australia is heading for a hung parliament, adding that there is some risk for the RBA to bring back a more explicit bias in its post meeting statement later today.

Key Quotes

The Australian Federal election result remains in the balance and vote counting for the House of Representatives resumes today.

The outcome of the election is not expected to be known for a few more days and at this stage it appears Australia is heading for a hung parliament.

This means both of the major parties would need to rely on crossbench independents or minor parties to pass legislation.

This will complicate the passing of budget measures and is likely to sit heavily on confidence measures.

So far the three main ratings agencies have not changed their view, but all remain concerned. 

This afternoon, the RBA will hold its July meeting and no change in policy is expected by the market.

Nonetheless we some risk the RBA brings back a more explicit bias in its post meeting statement.