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Further cuts in the RBA cash rate will be limited - ANZ
FXStreet (Bali) - Felicity Emmett, Co-Head of Australian Economics at ANZ, notes that RBA Stevens’ comments on Monday suggest that further cuts in the cash rate will be limited.
Key Quotes
"RBA Governor Glenn Stevens spoke overnight in New York on The World Economy and Australia. Stevens’ comments on monetary policy in Australia suggest that further cuts in the cash rate will be limited."
While another cut is clearly on the table, Stevens continued to emphasise that there are limits to what monetary policy can do."
We see his comments as lowering the probability of May rate cut closer to 50% and ultimately reducing the probability of further cuts in the cash rate below 2%.
