RBA finally delivered another 25bp cut - Rabobank

Michael Every, Head of Financial Markets Research at Rabobank, notes that the RBA finally delivered another 25bp cut to take the OCR down to 1.75%.

Key Quotes

“Perhaps it was the ultra-low Q1 CPI; perhaps it was the strong AUD; and perhaps it was the US Treasury not naming Australia as a currency manipulator, leaving it room for action.

Regardless, rates are now lower, and AUD is back below 0.76 again. The RBA also noted that housing was now less overheated than before and that rate cuts were less likely to be passed on due to tighter prudential measures.”