Prashant Newnaha, Senior Asia-Pacific Rates Strategist at TD Securities (TDS) offer four scenarios on the Reserve Bank of Australia’s (RBA) monetary policy decision and its impact on the Australian dollar.
Key Quotes:
“TD and the market expect the RBA to cut the cash rate tomorrow by 25bps to 1.25%. It would be highly unusual for the Bank to keep the cash rate on hold when the cut is fully priced.
The RBA has traditionally refrained from injecting a bias when the cash rate has been cut. We expect the same this time. Gov Lowe’s speech tmrw at 5.30pm AEST is likely to be more influential for markets.”
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