29 Jan 2015
RBA rate cut speculation continues to build - BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, shares that RBA is likely to ease its monetary policy in the first half of this year, which might fuel further weakness into AUD.
Key Quotes
“The Australian dollar has also weakened alongside the New Zealand dollar in the Asian trading session reflecting building speculation that the RBA will soon begin to ease monetary policy.”
“Well-known RBA watcher Terry McCrann from the Herald Sun has reported very strongly that the RBA “will almost certainly” begin to lower rates at its upcoming policy meeting on the 3rd February, and at the very least is likely to signal that a rate cut is becoming more likely. The report states that the case for a rate cut will be backed up by the RBA lowering their outlook for economic growth and inflation.”
“Terry McCrann speculates that the RBA will push back the timing of a return to trend growth to 2016 at best with inflation likely to remain closer to the bottom of the RBA’s target range for longer as well.”
“The higher probability of RBA monetary easing in the first half of this year is likely to lead to more front-loaded weakness in the Australian dollar than we had been anticipating.”
Key Quotes
“The Australian dollar has also weakened alongside the New Zealand dollar in the Asian trading session reflecting building speculation that the RBA will soon begin to ease monetary policy.”
“Well-known RBA watcher Terry McCrann from the Herald Sun has reported very strongly that the RBA “will almost certainly” begin to lower rates at its upcoming policy meeting on the 3rd February, and at the very least is likely to signal that a rate cut is becoming more likely. The report states that the case for a rate cut will be backed up by the RBA lowering their outlook for economic growth and inflation.”
“Terry McCrann speculates that the RBA will push back the timing of a return to trend growth to 2016 at best with inflation likely to remain closer to the bottom of the RBA’s target range for longer as well.”
“The higher probability of RBA monetary easing in the first half of this year is likely to lead to more front-loaded weakness in the Australian dollar than we had been anticipating.”