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5 May 2015
RBA set to cut rates, high AUD prime motivation - BNP Paribas
FXStreet (Bali) - According to BNP Paribas Economics Team, the AUD/USD rate appreciation in recent weeks will be the prime motivation for an RBA rate cut at today's policy meeting.
Key Quotes
"Back to around USD 0.80, the AUD is once again likely to be causing the RBA concern. We think it will be the prime motivation for a rate cut at next today's policy meeting."
"Some recent data, most notably retail sales and employment, probably surprised the RBA to the upside, but not sufficiently to change its view that growth will be sub-par for some time."
"In confirming significant headline disinflation, Q1 CPI figures afforded the space for the RBA to cut once more, although sticky underlying inflation will prevent easing below 2%."
"Sydney house prices and diminishing effectiveness of rate cuts are likely to remain concerns, but neither should prevent the RBA’s board from easing policy"
Key Quotes
"Back to around USD 0.80, the AUD is once again likely to be causing the RBA concern. We think it will be the prime motivation for a rate cut at next today's policy meeting."
"Some recent data, most notably retail sales and employment, probably surprised the RBA to the upside, but not sufficiently to change its view that growth will be sub-par for some time."
"In confirming significant headline disinflation, Q1 CPI figures afforded the space for the RBA to cut once more, although sticky underlying inflation will prevent easing below 2%."
"Sydney house prices and diminishing effectiveness of rate cuts are likely to remain concerns, but neither should prevent the RBA’s board from easing policy"