The RBA cut its key rate by 50 basis points, or 0.5 percentage point, to 3.75 percent on May 1. Governor Glenn Stevens cited economic conditions that “have been somewhat weaker than expected” after the RBA decision, which most economists surveyed by Bloomberg News predicted would be a quarter-percentage-point reduction in borrowing costs.
Interest-rate swaps data compiled by Bloomberg show investors are betting that the RBA will lower its benchmark rate to 3 percent by November, matching 2009’s all-time low. There’s more than a 35 percent chance of the rate declining to 2.75 percent or lower, the data indicate.
The RBA sees average growth of 3 percent in 2012, down from a February estimate of 3.5 percent, according to its quarterly monetary policy statement released today. Consumer prices will rise 2.5 percent in the year to December, from a previous prediction of 3 percent. Underlying inflation is predicted to be at 2.25 percent from a previous 2.75 percent, the central bank said. The estimates are based on the overnight cash rate target remaining at 3.75 percent, it said.
The Australian dollar’s relative strength index versus the greenback was at 41 from 56 on April 27, nearing the 30 level that some traders see as a sign the currency may be about to reverse direction.
Both the Australian and New Zealand currencies fell yesterday after data showed growth slowed in U.S. services industries, curbing demand for risk assets.
Interest-rate swaps data compiled by Bloomberg show investors are betting that the RBA will lower its benchmark rate to 3 percent by November, matching 2009’s all-time low. There’s more than a 35 percent chance of the rate declining to 2.75 percent or lower, the data indicate.
The RBA sees average growth of 3 percent in 2012, down from a February estimate of 3.5 percent, according to its quarterly monetary policy statement released today. Consumer prices will rise 2.5 percent in the year to December, from a previous prediction of 3 percent. Underlying inflation is predicted to be at 2.25 percent from a previous 2.75 percent, the central bank said. The estimates are based on the overnight cash rate target remaining at 3.75 percent, it said.
The Australian dollar’s relative strength index versus the greenback was at 41 from 56 on April 27, nearing the 30 level that some traders see as a sign the currency may be about to reverse direction.
Both the Australian and New Zealand currencies fell yesterday after data showed growth slowed in U.S. services industries, curbing demand for risk assets.
No comments:
Post a Comment