Forex Flash: RBA expected to cut by 50bp vs 75bp - NAB

The NAB is retracting from its RBA 75bp rate cut this year by cutting back 25bp on projections, to now call for only two further 25 bps cuts for a cumulative 50bps in 2013.

"We still see a case for significantly easier monetary policy ahead but acknowledge there have been early signs that lower interest rates are already getting some traction in housing and equity markets, plus the RBA’s expressed ‘comfort’ with current activity, and finally that wholesale funding costs have fallen recently" NAB said.