25 Mar 2015
RBA might cut rates by 25bp in April - ANZ
FXStreet (Barcelona) - Commenting on the release of the RBA’s Financial Stability Review, Felicity Emmett, Co-Head of Australian Economics at ANZ, sees a high possibility of a cut in Australia’s cash rate, anticipating a 25bp cut to 2% likely in the central banks April meeting.
Key Quotes
“The release of the RBA’s half yearly Financial Stability Review (FSR) today reiterated the Bank’s concerns over housing, especially in the investor space. It did not, however, suggest that those concerns were escalating.”
“It also outlined how recent APRA guidelines will be implemented, including a possible increase in capital requirements for individual institutions.”
“We continue to expect the Bank to rely on macroprudential measures to take the heat out of the more speculative elements of the housing market and cut the cash rate another 25bp to 2.0%, most likely at the April meeting.”
Key Quotes
“The release of the RBA’s half yearly Financial Stability Review (FSR) today reiterated the Bank’s concerns over housing, especially in the investor space. It did not, however, suggest that those concerns were escalating.”
“It also outlined how recent APRA guidelines will be implemented, including a possible increase in capital requirements for individual institutions.”
“We continue to expect the Bank to rely on macroprudential measures to take the heat out of the more speculative elements of the housing market and cut the cash rate another 25bp to 2.0%, most likely at the April meeting.”