10 May 2013
RBA surprises – what more could be in store? - Bank of America-Merrill Lynch
FXstreet.com (London) - RBA surprises – what more could be in store? - Bank of America-Merrill Lynch
The RBA cut its cash rate by 25bp to an all-time low of 2.75%. recently, and surprised the market by doing so. Saul Eslake, writing for Global Economic Weekly at Bank of America-Merrill Lynch, said, reporting today, that ‘ the language of the post-meeting statement leaves the door open to another cut next month.’
He went on to say ’ The Board decided to use “some of the scope” afforded by the inflation outlook to “encourage sustainable growth in the economy.”' He then added, '' this particular choice of words – which at least on the surface represents a distinct change of language from that used in the closing paragraphs of the three previous post-meeting statements, suggests that the RBA Board believes that there is “scope” for more rate cuts, if necessary, in order to support economic growth and offset the effects of the persistent strength in the exchange rate.''
The RBA cut its cash rate by 25bp to an all-time low of 2.75%. recently, and surprised the market by doing so. Saul Eslake, writing for Global Economic Weekly at Bank of America-Merrill Lynch, said, reporting today, that ‘ the language of the post-meeting statement leaves the door open to another cut next month.’
He went on to say ’ The Board decided to use “some of the scope” afforded by the inflation outlook to “encourage sustainable growth in the economy.”' He then added, '' this particular choice of words – which at least on the surface represents a distinct change of language from that used in the closing paragraphs of the three previous post-meeting statements, suggests that the RBA Board believes that there is “scope” for more rate cuts, if necessary, in order to support economic growth and offset the effects of the persistent strength in the exchange rate.''