Back
5 May 2015
RBA not in a hurry to cut rates again – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team views that after cutting rates in today’s meeting the RBA will likely go in a wait and see mode.
Key Quotes
“The first is that the Reserve Bank of Australia delivered a 25 bp rate cut but signalled in its statement that it has returned to a wait and see mode. The Australian dollar initially was sold to just below $0.7790 and quickly rebounded to nearly$0.7920 before the buying faded. It has settled in a $0.7860-$0.7885 range.”
“The monetary policy statement at the end of the week will likely confirm that the RBA is not in a hurry to cut rates again. The labor market appears to have stabilized, and household demand has improved. Many had been anticipating another cut next quarter, and this will be reconsidered now.”
Key Quotes
“The first is that the Reserve Bank of Australia delivered a 25 bp rate cut but signalled in its statement that it has returned to a wait and see mode. The Australian dollar initially was sold to just below $0.7790 and quickly rebounded to nearly$0.7920 before the buying faded. It has settled in a $0.7860-$0.7885 range.”
“The monetary policy statement at the end of the week will likely confirm that the RBA is not in a hurry to cut rates again. The labor market appears to have stabilized, and household demand has improved. Many had been anticipating another cut next quarter, and this will be reconsidered now.”