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5 May 2015
RBA to cut rate by 25bp - ANZ
FXStreet (Bali) - ANZ Economists expect the RBA Board to cut the cash rate by 25bps to 2% at its meeting today.
Key Quotes
"The RBA will then release the Statement on Monetary Policy (SoMP) on Friday. In reviewing the forecasts, policymakers will consider the data over the entire three month period since the Bank last updated its forecasts in February."
"In our view, the key piece of data that the Bank will consider is the disappointing CAPEX report, which implied a bleak outlook for non-mining investment. Further, the Bank’s April minutes highlighted the risk of lower-than-currently-expected mining investment as well as lower resource export volumes."
"Although there has been discussion on the reduced efficacy of monetary policy compared to previous rate-cutting periods, we do not believe that the Board’s concerns in this regard are strong enough to preclude a rate cut today."
Key Quotes
"The RBA will then release the Statement on Monetary Policy (SoMP) on Friday. In reviewing the forecasts, policymakers will consider the data over the entire three month period since the Bank last updated its forecasts in February."
"In our view, the key piece of data that the Bank will consider is the disappointing CAPEX report, which implied a bleak outlook for non-mining investment. Further, the Bank’s April minutes highlighted the risk of lower-than-currently-expected mining investment as well as lower resource export volumes."
"Although there has been discussion on the reduced efficacy of monetary policy compared to previous rate-cutting periods, we do not believe that the Board’s concerns in this regard are strong enough to preclude a rate cut today."