RBA Day: Decisiveness or simply more dithering
RBA Day: Decisiveness or simply more dithering? The Reserve Bank of Australia will announce their February monetary policy decision at 2.30pm this afternoon. While I think the RBA should cut rates, in my opinion they should have moved pre-emptively late last year, keeping with tradition for being cautious and slow moving I expect that we'll only see the adoption of an easing bias, not a 25bps rate cut. While it will create some initial disappointment should that eventuate, equities and shorter-dated rates will sell off fractionally while the Australian Dollar will bounce, it will at least keep the expectation that rates are going lower, something that in turn will help maintain the bid in equities and rates and pressurise the Australian Dollar (beyond the short-term, of course). (VIEW LINK)
David is a Director of Scutt Partners Pty Ltd and has successfully worked in the financial services markets over the past 12 years with both large and smaller banking groups. He has provided strategic financial analysis for currency and interest...
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