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1 Jun 2015
No change in the RBA tomorrow – BBH
FXStreet (Edinburgh) - According to analysts at BBH, the RBA would refrain from lowering its benchmark rate at tomorrow’s meeting.
Key Quotes
“The central bank has adopted a neutral posture after a mini-easing cycle that brought the cash rate to a record low of 2.0%”.
“The market is pricing in practically no chance of a cut now, but many investors continue to look for another rate cut in this cycle”.
“The fact that the Australian dollar has lost 6.75% against the US dollar since the high on May 14 may be one of the factors buying the RBA some time”.
“The weakness of the New Zealand dollar (-8.5% against the US dollar since late April) and the 4.7% depreciation of the yen (since May 14) has mitigated the impact on the Australian dollar's trade-weighted index, which has fallen only 3%)”.
Key Quotes
“The central bank has adopted a neutral posture after a mini-easing cycle that brought the cash rate to a record low of 2.0%”.
“The market is pricing in practically no chance of a cut now, but many investors continue to look for another rate cut in this cycle”.
“The fact that the Australian dollar has lost 6.75% against the US dollar since the high on May 14 may be one of the factors buying the RBA some time”.
“The weakness of the New Zealand dollar (-8.5% against the US dollar since late April) and the 4.7% depreciation of the yen (since May 14) has mitigated the impact on the Australian dollar's trade-weighted index, which has fallen only 3%)”.