19 Jul 2013
Flash: RBA still to cut rate 3 more times, next in August - Westpac
FXstreet.com (Barcelona) - Westpac remains determined to forecast three more rate cuts by the Reserve Bank of Australia to 2% by the March quarter of 2014.
Key Quotes
"Market pricing has fluctuated markedly over the last few months with current pricing settling around almost two cuts by that time. Only recently markets were questioning whether indeed any more cuts would be forthcoming so it is difficult for agents to base medium term decisions purely around market pricing."
"We expect the next cut is likely to occur at the Bank's next Board meeting on August 6. Markets and most commentators were unnerved by the minutes of the Bank's July Board meeting which noted, "Given the exchange rate adjustment that was occurring, and with substantial degree of monetary stimulus already in place, members assessed the current stance of policy to be appropriate for the time being"."
Key Quotes
"Market pricing has fluctuated markedly over the last few months with current pricing settling around almost two cuts by that time. Only recently markets were questioning whether indeed any more cuts would be forthcoming so it is difficult for agents to base medium term decisions purely around market pricing."
"We expect the next cut is likely to occur at the Bank's next Board meeting on August 6. Markets and most commentators were unnerved by the minutes of the Bank's July Board meeting which noted, "Given the exchange rate adjustment that was occurring, and with substantial degree of monetary stimulus already in place, members assessed the current stance of policy to be appropriate for the time being"."