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3 Mar 2015
RBA keeps rates steady, but maintains easing bias – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team mentions that today’s Gov Stevens’ comments indicate that the RBA likely maintains an easing bias, with April or May as next possible targets for a rate cut.
Key Quotes
“Probabilities for a 2nd consecutive RBA policy easing tracked above 60% heading into today's decision - both in economist surveys and the fixed income markets. However, after last month's unexpected cut, Gov Stevens once again surprised investors with a rate hold at 2.25%.”
“The statement was mainly a reiteration of that of last month though notably more brief, since last month's decision went to some length in explaining the cut.”
“Key component of the statement was the reiteration that further easing may be appropriate, which analysts perceive as continued easing bias likely to translate into an eventual easing in April or May.”
“Also of note out of Australia, property prices were much stronger than expected, and housing inflation has been cited as a potential deterrent for RBA to take an extra accommodative stance. Economist with JPMorgan said the rise in property prices suggests demand is still outpacing supply, while also pointing to insufficient building activity pushing up prices.”
“AUD/USD spiked up to $0.7830 after the surprise RBA hold - up about 80pips from session lows - while S&P/ASX fell toward 5,900 before recovering above 5,940 headed into the close.”
Key Quotes
“Probabilities for a 2nd consecutive RBA policy easing tracked above 60% heading into today's decision - both in economist surveys and the fixed income markets. However, after last month's unexpected cut, Gov Stevens once again surprised investors with a rate hold at 2.25%.”
“The statement was mainly a reiteration of that of last month though notably more brief, since last month's decision went to some length in explaining the cut.”
“Key component of the statement was the reiteration that further easing may be appropriate, which analysts perceive as continued easing bias likely to translate into an eventual easing in April or May.”
“Also of note out of Australia, property prices were much stronger than expected, and housing inflation has been cited as a potential deterrent for RBA to take an extra accommodative stance. Economist with JPMorgan said the rise in property prices suggests demand is still outpacing supply, while also pointing to insufficient building activity pushing up prices.”
“AUD/USD spiked up to $0.7830 after the surprise RBA hold - up about 80pips from session lows - while S&P/ASX fell toward 5,900 before recovering above 5,940 headed into the close.”