WEEKLY BANKING NEWS
09/May/2012 - More rate cuts coming very soon
Source: Property Observer
Bill Evans, Westpac chief economist, has predicted more RBA rate cuts in the next few months.
“Cuts can be expected earlier by the end of the September quarter, being concentrated in that July–September window.”
Evans says the monetary policy statements make it quite clear that the case for another rate cut has already been made.
Savanth Sebastian, an economist at CommSec noted the door had been left open for further rate cuts with CommSec pencilling in a quarter per cent rate cut in August.
11/May/2012 - Falling unemployment could mean no rate cuts
Source: BrokerNews
ABS figures released yesterday show Australia's unemployment rate fell to 4.9% in April. Economists had predicted a rise in the jobless rate to 5.3 per cent.
Citigroup economist Josh Williamson said the rise in employment may deter the Reserve from making any further cuts to the cash rate in the near future.
“The likelihood of a follow-up near-term rate cut has diminished following the fall in unemployment. The RBA will go back to watching the domestic inflation data and European developments,” Williamson said.
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