RBA rate cut of 25bp was a “political error”, says Accumen Management

The decision of the Reserve Bank of Australia (RBA) of cutting the official rate by 25 basis points was not all well received across the global financial markets. Ken Veksler, for example, who is managing director of London-based Accumen Management, says that with this decision, the RBA “has lost all respectability”. The asset manager argues that the price action that ensued around the announcement was “entirely laughable” as the bulk of the move in the currency had pre-emptively occurred since last Thursday, wherein a series of articles were published in local Australian media telegraphing this change in monetary policy. “If Governor Glenn Stevens thought he was giving a master class in central bank communication, he’s sorely wrong. Rather, what he’s done is bow to political pressure and left himself without any dry powder whatsoever”, says Veksler. Click here to read more: (VIEW LINK)