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21 Apr 2015
Another RBA rate cut in the pipeline – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, believes that RBA might cut rates again later this year as Chinese growth concerns sprout up.
Key Quotes
“On April 7 the RBA surprised the market by holding rates steady. However, the overnight release of the minutes from this meeting warned “that further easing of policy may be appropriate over the period ahead to foster sustainable growth in demand and inflation consistent with the target”.”
“Last week’s stronger than expected Australian labour market release may moderate expectations regarding the path of RBA rate cuts going forward as might the continued strength of the housing market in Sydney and to some extent Melbourne.”
“That said, assuming tomorrow’s release of Q1 Australian CPI data confirms expectations for a moderation in inflation pressures, it is our expectation that the RBA will cut rates again later this year as the darks clouds over Chinese growth prospect continue to gather. The next RBA policy meeting is scheduled for May 5.”
Key Quotes
“On April 7 the RBA surprised the market by holding rates steady. However, the overnight release of the minutes from this meeting warned “that further easing of policy may be appropriate over the period ahead to foster sustainable growth in demand and inflation consistent with the target”.”
“Last week’s stronger than expected Australian labour market release may moderate expectations regarding the path of RBA rate cuts going forward as might the continued strength of the housing market in Sydney and to some extent Melbourne.”
“That said, assuming tomorrow’s release of Q1 Australian CPI data confirms expectations for a moderation in inflation pressures, it is our expectation that the RBA will cut rates again later this year as the darks clouds over Chinese growth prospect continue to gather. The next RBA policy meeting is scheduled for May 5.”