3 Feb 2015
RBA joins the global monetary easing party with surprise rate cut – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that RBA entered the global monetary easing theme by cutting rates by 25bps to a record low of 2.25%, sending AUD/USD to make a new 5-year low.
Key Quotes
“Reserve Bank of Australia became the latest major central bank to go beyond expectations in policy accommodation, cutting interest rates by 25bps to a new record low of 2.25% against expected hold with an easing bias.”
“Heeding the call from Australia treasurer Hockey to respond to changing global circumstances and also tracking a much more dovish position from the RBNZ last week, RBA cited weaker than expected growth in Europe/Japan, lower oil prices pushing down inflation, below-trend domestic growth, and expectations for persisting spare capacity in rationalizing its easing.”
“Moreover, RBA noted the decline in the terms of trade is working to reduce income growth, and this has been reflected in the 9th consecutive month of trade deficit in Australia also released today.”
“AUD/USD fell about 140pips to 5-year low of $0.7650 after the RBA decision, while S&P/ASX rose above 5,700 - the highest level in 6 1/2 years.”
“NZD/USD also hit multi-year lows below the $0.72 handle, down over 80pips after the RBA.”
Key Quotes
“Reserve Bank of Australia became the latest major central bank to go beyond expectations in policy accommodation, cutting interest rates by 25bps to a new record low of 2.25% against expected hold with an easing bias.”
“Heeding the call from Australia treasurer Hockey to respond to changing global circumstances and also tracking a much more dovish position from the RBNZ last week, RBA cited weaker than expected growth in Europe/Japan, lower oil prices pushing down inflation, below-trend domestic growth, and expectations for persisting spare capacity in rationalizing its easing.”
“Moreover, RBA noted the decline in the terms of trade is working to reduce income growth, and this has been reflected in the 9th consecutive month of trade deficit in Australia also released today.”
“AUD/USD fell about 140pips to 5-year low of $0.7650 after the RBA decision, while S&P/ASX rose above 5,700 - the highest level in 6 1/2 years.”
“NZD/USD also hit multi-year lows below the $0.72 handle, down over 80pips after the RBA.”