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17 Sep 2013
Flash: RBA unlikely to cut further - HSBC
FXstreet.com (Barcelona) - Today’s RBA minutes suggest the RBA is comfortable keeping rates steady for now, notes Paul Bloxham, Chief Economist at HSBC.
Key Quotes
"They have scope to cut further and noted that ‘the Bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them’, they are very much in ‘wait and see’ mode."
"There was little (if any) forward guidance provided today. In terms of the next move, there are two key forces working in opposite directions. The recent rise in the AUD could encourage a further cut, but the beginnings of a housing market boom may make them reluctant. Our central case remains that the RBA are unlikely to cut further."
Key Quotes
"They have scope to cut further and noted that ‘the Bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them’, they are very much in ‘wait and see’ mode."
"There was little (if any) forward guidance provided today. In terms of the next move, there are two key forces working in opposite directions. The recent rise in the AUD could encourage a further cut, but the beginnings of a housing market boom may make them reluctant. Our central case remains that the RBA are unlikely to cut further."