17 Mar 2015
RBA to cut rates again in April - RBS
FXStreet (Bali) - Greg Gibbs, FX Strategist at RBS, expects the RBA to cut rates again in April.
Key Quotes
"We expect the RBA to cut rates again in April. We see this as part of a decision the RBA appears to have taken since late last year to implement further policy easing. After cutting in February and pausing in March a further cut in April would be consistent with the forecasts the RBA laid out for another year of sub-trend growth in its February quarterly statement on monetary policy."
"The progress made by APRA to place greater scrutiny on bank lending for mortgages appeared to be part of the process opening the door for rate cuts. Further discussion on these matters in coming weeks may increase the market expectations for a rate cut in April and potential for further cuts (if required) later in the year. As such we continue to see near term down-side risk for the AUD."
Key Quotes
"We expect the RBA to cut rates again in April. We see this as part of a decision the RBA appears to have taken since late last year to implement further policy easing. After cutting in February and pausing in March a further cut in April would be consistent with the forecasts the RBA laid out for another year of sub-trend growth in its February quarterly statement on monetary policy."
"The progress made by APRA to place greater scrutiny on bank lending for mortgages appeared to be part of the process opening the door for rate cuts. Further discussion on these matters in coming weeks may increase the market expectations for a rate cut in April and potential for further cuts (if required) later in the year. As such we continue to see near term down-side risk for the AUD."