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12 Mar 2013
Forex Flash: RBA still to cut by 25bp in June and November - NAB
NAB reduced the rate cuts projections from 75bp to now expect an additional 50bp in 2013.
According to the bank: "We still see a case for significantly easier monetary policy ahead, but acknowledge there have been early signs that the RBA’s easing so far is getting some traction in housing, consumption and equity markets; plus the RBA’s expressed ‘comfort’ with current activity; and finally noting that wholesale funding costs have fallen. Given these developments we decided to take one of our three forecast rate cuts out of our forecasts but still have two more 25bps cuts in June and November."
According to the bank: "We still see a case for significantly easier monetary policy ahead, but acknowledge there have been early signs that the RBA’s easing so far is getting some traction in housing, consumption and equity markets; plus the RBA’s expressed ‘comfort’ with current activity; and finally noting that wholesale funding costs have fallen. Given these developments we decided to take one of our three forecast rate cuts out of our forecasts but still have two more 25bps cuts in June and November."