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17 Mar 2015
Markets pricing in two more rate cuts by the RBA – BBH
FXStreet (Barcelona) - RBA minutes maintained a dovish tone, opening doors for further rate cuts, with markets now pricing in two more cuts in 2015, notes the Research Team at Brown Brothers Harriman.
Key Quotes
“RBA minutes came out for this month’s meeting. The tone was generally dovish, as the bank felt that a case to ease further “might emerge” but saw advantages to waiting for more data and for allowing the February cut to take effect.”
“The RBA saw the economy operating with spare capacity “for some time” and added that a lower currency would help achieve balanced growth in the economy.”
“All in all, the RBA certainly left the door open to further cuts, and markets are pricing in two more cuts in 2015.“
Key Quotes
“RBA minutes came out for this month’s meeting. The tone was generally dovish, as the bank felt that a case to ease further “might emerge” but saw advantages to waiting for more data and for allowing the February cut to take effect.”
“The RBA saw the economy operating with spare capacity “for some time” and added that a lower currency would help achieve balanced growth in the economy.”
“All in all, the RBA certainly left the door open to further cuts, and markets are pricing in two more cuts in 2015.“