Tuesday, October 20, 2015

RBA: Risk of further rate cuts has increased - Macquarie Bank

FXStreet (Bali) - The risk of further rate cuts from the RBA in 2016 “has increased” given the latest developments, according to Macquarie Bank, reports David Scutt from Business Insider.

Key Quotes - Macquarie Bank

“We reiterate our forecast for subdued growth in 2016, and remain of the view that an additional rate cut and further AUD weakness is needed in order to rebalance the economy."

“We reiterate our forecast for a November RBA rate cut, followed by an extended pause."

“However, the risk of additional easing being required in 2016 has increased. Whether further easing is ultimately required depends on the adjustment of the AUD, which in part will be a reflection of the timing and extent of monetary policy divergence between the RBA and the US Federal Reserve.”
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