1 May 2015
RBA decision poses downside potential for the AUD - Commerzbank
FXStreet (Córdoba) - The Reserve Bank of Australia (RBA) will decide on its key interest rate this coming Tuesday, and according to Commerzbank analysts, a rate cut is still likely.
Key Quotes
“The majority of analysts believe the RBA will lower the key interest rate by 25 basis points, though statements by RBA Governor Stevens, a strong labour market report and a recovery in commodity prices have dampened rate cut speculation on the market lately. Even so, a rate cut is still likely in our view”.
“The decision therefore poses downside potential for the AUD. A weaker AUD would suit the RBA in any case. It has been saying for some time that a depreciation of the currency is necessary to stimulate the sectors outside of mining and thus achieve ‘more balanced’ growth”.
Key Quotes
“The majority of analysts believe the RBA will lower the key interest rate by 25 basis points, though statements by RBA Governor Stevens, a strong labour market report and a recovery in commodity prices have dampened rate cut speculation on the market lately. Even so, a rate cut is still likely in our view”.
“The decision therefore poses downside potential for the AUD. A weaker AUD would suit the RBA in any case. It has been saying for some time that a depreciation of the currency is necessary to stimulate the sectors outside of mining and thus achieve ‘more balanced’ growth”.