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3 Mar 2015
Rate cuts by the RBA still on the cards – Danske Bank
FXStreet (Edinburgh) - Signe Roed-Frederiksen, Senior Analyst at Danske Bank, expects the RBA to ease further in the upcoming months.
Key Quotes
“Contrary to expectations, the Reserve Bank of Australia left the overnight cash rate unchanged at 2.25% but stated that further easing could become necessary in the period ahead”.
“AUD/USD initially climbed as much as 1%. While today’s decision highlights a degree of caution in the board with respect to the housing market, we still expect RBA to eventually cut rates further in order to ease the rigid transition from a commodity-based economy to a diversified model”.
“Consequently, we maintain our view that more AUD downside will play out in the coming months”.
Key Quotes
“Contrary to expectations, the Reserve Bank of Australia left the overnight cash rate unchanged at 2.25% but stated that further easing could become necessary in the period ahead”.
“AUD/USD initially climbed as much as 1%. While today’s decision highlights a degree of caution in the board with respect to the housing market, we still expect RBA to eventually cut rates further in order to ease the rigid transition from a commodity-based economy to a diversified model”.
“Consequently, we maintain our view that more AUD downside will play out in the coming months”.