RBA Cuts Interest Rates by 25bps! Positive for Equity markets.. Albeit priced in..

James Nicolaou

The Reserve Bank of Australia has cut the official cash rate to an unprecedented 1.5% to maintain downward pressure on the currency and spur sluggish inflation and business investment. As was forecast by most analysts, the board lowered the cash rate by 0.25 of a percentage point from 1.75% on Tuesday. Interestingly the ASX SPI Futures jumped 20pts and is now winding back.. A case of buy the rumour & sell the fact???!!


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Medium screen shot 2016 01 12 at 2.25.34 pm

James Marlay

I thought the comments about the property market were interesting. Essentially RBA said they think property price growth has eased and they have their eyes on the pipeline of apartments coming through on the east coast. This was one of the major sticking points in the 'against cutting' rates camp. It was very specific commentary so they are making a bold statement.

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