Back
10 Feb 2015
RBA to cut again in May - NAB
FXStreet (Bali) - NAB still see the need for another cut by the RBA, having brought forward an August cut to May, with a 30% probability of another cut thereafter, the bank said.
Key Quotes
"The RBA cut the cash rate (25bps) one month sooner than we expected, in an attempt to boost a soft economy with rising unemployment. Our view is that the RBA will sit back and watch for a few months to see if more needs to be done."
"Fundamentally we still see the need for another cut to counter lower commodity prices and other domestic headwinds."
"We have brought forward our August cut to May – with a 30% probability of another cut thereafter. The timing and extent of the cuts will be heavily data dependent while a resurgent housing market would work in the opposite direction."
Key Quotes
"The RBA cut the cash rate (25bps) one month sooner than we expected, in an attempt to boost a soft economy with rising unemployment. Our view is that the RBA will sit back and watch for a few months to see if more needs to be done."
"Fundamentally we still see the need for another cut to counter lower commodity prices and other domestic headwinds."
"We have brought forward our August cut to May – with a 30% probability of another cut thereafter. The timing and extent of the cuts will be heavily data dependent while a resurgent housing market would work in the opposite direction."