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20 May 2015
RBA has scope to adjust rates lower - ANZ
FXStreet (Bali) - According to ANZ Economists, while the RBA is reluctant to cut further, it has scope to adjust rates lower.
Key Quotes
"Yesterday’s RBA minutes from the May board meeting provided little new information on the economy. The minutes did, however, provide an explicit easing bias – something that was absent from the post-meeting statement, although in our view implicit in the Bank’s ongoing forecast for below-trend growth and rising unemployment."
"The minutes reiterated the comment about “recent encouraging trends in household demand” and also noted that “further depreciation of the exchange rate seemed to be both likely and necessary, particularly given the significant declines in key commodity prices”.
"In combination with Deputy Governor, Phil Lowe’s speech yesterday, they suggest that while the Board is reluctant to cut further, it has scope to adjust rates if growth disappoints."
Key Quotes
"Yesterday’s RBA minutes from the May board meeting provided little new information on the economy. The minutes did, however, provide an explicit easing bias – something that was absent from the post-meeting statement, although in our view implicit in the Bank’s ongoing forecast for below-trend growth and rising unemployment."
"The minutes reiterated the comment about “recent encouraging trends in household demand” and also noted that “further depreciation of the exchange rate seemed to be both likely and necessary, particularly given the significant declines in key commodity prices”.
"In combination with Deputy Governor, Phil Lowe’s speech yesterday, they suggest that while the Board is reluctant to cut further, it has scope to adjust rates if growth disappoints."