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4 Feb 2015
More rate cuts to come from the RBA? – MP
FXStreet (Barcelona) - Stuart McPhee, Currency Analyst at MarketPulse, views that Australia’s futures contracts signal that the market is expecting further rate cuts from the RBA, with majority speculating another 50bps cut by 2015-end.
Key Quotes
“Australia’s markets, which flagged an interest-rate cut most economists missed, are signaling two more reductions as the central bank seeks a weaker currency.”
“Futures contracts show about 80 percent odds Reserve Bank of Australia Governor Glenn Stevens will bring the target for overnight loans between banks down to 1.75 percent by year-end from 2.25 percent now.”
“Stevens and his fellow policy makers reduced the rate by 25 basis points on Tuesday to a record and said the Australian dollar remains overvalued.”
Key Quotes
“Australia’s markets, which flagged an interest-rate cut most economists missed, are signaling two more reductions as the central bank seeks a weaker currency.”
“Futures contracts show about 80 percent odds Reserve Bank of Australia Governor Glenn Stevens will bring the target for overnight loans between banks down to 1.75 percent by year-end from 2.25 percent now.”
“Stevens and his fellow policy makers reduced the rate by 25 basis points on Tuesday to a record and said the Australian dollar remains overvalued.”