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16 Mar 2015
Prospects of a rate cut by the RBA losing strength – TDS
FXStreet (Edinburgh) - According to strategists at TD Securities, the chances of a near term rate cut by the RBA could be shrinking.
Key Quotes
“These minutes risk killing near-term rate cut hopes”.
“The next FSR is released on 25 March, and the RBA would have been briefed on its contents ahead of the last RBA meeting”.
“So we suspect the pause on 3 March will be explained by the Board members’ reaction to the FSR, debating the risk that easier monetary policy ignites the housing sector to uncomfortable levels due to the absence of powerful macroprudential tools, in which case we anticipate that the appetite for a near-term rate cut can fade even further”.
“The potential upside for AUD over the week is that much greater, given that this weekend brings the close of China’s National People’s Congress. The closing remarks there may support the hopes for further Chinese easing, leaving risk sentiment and AUD opening the week on a stronger footing to begin with”.
Key Quotes
“These minutes risk killing near-term rate cut hopes”.
“The next FSR is released on 25 March, and the RBA would have been briefed on its contents ahead of the last RBA meeting”.
“So we suspect the pause on 3 March will be explained by the Board members’ reaction to the FSR, debating the risk that easier monetary policy ignites the housing sector to uncomfortable levels due to the absence of powerful macroprudential tools, in which case we anticipate that the appetite for a near-term rate cut can fade even further”.
“The potential upside for AUD over the week is that much greater, given that this weekend brings the close of China’s National People’s Congress. The closing remarks there may support the hopes for further Chinese easing, leaving risk sentiment and AUD opening the week on a stronger footing to begin with”.