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15 May 2015
RBA to trim rates by 25bp to a new record low of 1.75% in November - Nomura
FXStreet (Mumbai) - The Reserve Bank of Australia (RBA) will cut its official cash rate to a new record low in November this year, forecasts Andrew Ticehurst, economist at Nomura.
Key Quotes:
"As we turn our attention to the second half of the year and consider recent economic and market developments, both in Australia and abroad, we now believe it is appropriate to add a rate cut to our H2 cash rate profile,"
"The next real window for an RBA cut is likely August, and we currently assign a 40% to 50% probability to a move at this time,"
"We forecast a 25bp easing in November, which would take the Australian cash rate to a fresh record low of 1.75%."
"Moreover, given concerns about the strength of the Australian property market and the build up of household debt, a monetary loosing implies by the exchange rate would have been particularly welcome to the RBA which may otherwise have had to cut rates more aggressively."
Key Quotes:
"As we turn our attention to the second half of the year and consider recent economic and market developments, both in Australia and abroad, we now believe it is appropriate to add a rate cut to our H2 cash rate profile,"
"The next real window for an RBA cut is likely August, and we currently assign a 40% to 50% probability to a move at this time,"
"We forecast a 25bp easing in November, which would take the Australian cash rate to a fresh record low of 1.75%."
"Moreover, given concerns about the strength of the Australian property market and the build up of household debt, a monetary loosing implies by the exchange rate would have been particularly welcome to the RBA which may otherwise have had to cut rates more aggressively."