7 Aug 2013
Flash: RBA easing show not over - Nomura
FXstreet.com (Barcelona) - According to Nomura Economist Charles St-Arnaud and Strategist Martin Whetton, the recent RBA decision to cut rates by 25bp to 2.50% won't be the last, with another 25bp rate reduction expected in November.
Key Quotes
"We continue to believe the RBA will cut rates further this year, but the timing of this cut depends on incoming data. However, given the recent modus operandi of the RBA, the most likely timing for a cut will be the November meeting, after both the release of CPI for Q3 and the federal election."
"While there is a toning down of the language in the statement (perhaps a nod to be politically neutral during the Federal election campaign), the MPS on Friday will give the market the opportunity to reassess that view."
Key Quotes
"We continue to believe the RBA will cut rates further this year, but the timing of this cut depends on incoming data. However, given the recent modus operandi of the RBA, the most likely timing for a cut will be the November meeting, after both the release of CPI for Q3 and the federal election."
"While there is a toning down of the language in the statement (perhaps a nod to be politically neutral during the Federal election campaign), the MPS on Friday will give the market the opportunity to reassess that view."