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17 Sep 2013
Flash: Only one more RBA cut, probably in early 2014 - NAB
FXstreet.com (Barcelona) - After the RBA minutes publication, which remained relatively stable compared to the neutral tone from Sept 3 on its monetary policy decision, noting they remain open to varies possibilities subject to data/exchange rate, the first thoughts by NAB economists are out.
Key Quotes
"Same policy directive as aug minutes - should "neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them. so soft easing bias, on hold now and need data to re-build easing case....."
"More evident reluctance to cut rates again – they note that even with high $A there is a “substantial degree of policy stimulus in place”. Particularly evident in housing mkt.
A Nov cut not very likely while house prices rising. As wrote earlier, if we are to see another cut (and I still think we will as unemployment rate rises) there is probably only one more and its more likely to be in early 2014 than next few months."
Key Quotes
"Same policy directive as aug minutes - should "neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them. so soft easing bias, on hold now and need data to re-build easing case....."
"More evident reluctance to cut rates again – they note that even with high $A there is a “substantial degree of policy stimulus in place”. Particularly evident in housing mkt.
A Nov cut not very likely while house prices rising. As wrote earlier, if we are to see another cut (and I still think we will as unemployment rate rises) there is probably only one more and its more likely to be in early 2014 than next few months."