2 Feb 2015
Australia might see a 50bp rate cut by Q2 2015 – Nomura
FXStreet (Barcelona) - The Research Team at Nomura forecasts RBA to cut rates by 25bp in its coming meeting, and further cut rates by 25bp in Q2 2015.
Key Quotes
“The RBA will be in focus on Tuesday. This is a meeting heavily speculated upon by media and the market. We forecast a 25bp cut with the likelihood slightly above 50% and another 25bp cut in Q2 2015.”
“RBA will also likely note downward revisions to world growth estimates and a more modest downgrade of domestic growth.”
“Comments on inflation will be interesting to watch as Q4 CPI inflation was higher than expected.”
“Comments on the exchange rate will be critical as the Bank mentioned 0.75 as a more desirable level for AUDUSD; these comments will likely have an impact on the FX market.”
Key Quotes
“The RBA will be in focus on Tuesday. This is a meeting heavily speculated upon by media and the market. We forecast a 25bp cut with the likelihood slightly above 50% and another 25bp cut in Q2 2015.”
“RBA will also likely note downward revisions to world growth estimates and a more modest downgrade of domestic growth.”
“Comments on inflation will be interesting to watch as Q4 CPI inflation was higher than expected.”
“Comments on the exchange rate will be critical as the Bank mentioned 0.75 as a more desirable level for AUDUSD; these comments will likely have an impact on the FX market.”