3 Feb 2015
RBA could incur in further rate cuts – Danske Bank
FXStreet (Edinburgh) - Pernille Nielse, Senior Analyst at Danske Bank, expects additional rate cuts to follow today’s decision by the RBA.
Key Quotes
“This morning the Reserve Bank of Australia surprised financial markets by cutting the cash rate target by 25bp to 2.25% on the back of disappointing growth and inflation”.
“While we have been calling for a rate cut for some time, this morning’s decision is noteworthy as it happened without governor Stevens first changing the neutral rhetoric”.
“This highlights the magnitude of the current global currency war with economies getting squeezed between an aggressive ECB and Bank of Japan’s easing”.
“We cannot rule out further rate cuts and expect more AUD downside to play out”.
Key Quotes
“This morning the Reserve Bank of Australia surprised financial markets by cutting the cash rate target by 25bp to 2.25% on the back of disappointing growth and inflation”.
“While we have been calling for a rate cut for some time, this morning’s decision is noteworthy as it happened without governor Stevens first changing the neutral rhetoric”.
“This highlights the magnitude of the current global currency war with economies getting squeezed between an aggressive ECB and Bank of Japan’s easing”.
“We cannot rule out further rate cuts and expect more AUD downside to play out”.