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21 May 2013
Flash: Soft Inflation led to Australian rate cuts - Societe Generale
FXstreet.com (Barcelona) - Societe Generale Strategist, Alvin T. Tan notes that in the May 7 meeting minutes, the Reserve Bank of Australia cited a softer-than expected inflation outlook to permit it to cut the cash rate to a record low, as it seeks to boost underperforming sectors of the economy.
However, he notes that there was no indication in the minutes as to whether more cuts are forthcoming. Elsewhere, he notes that NZD meanwhile continued to recover despite the fact that NZ 1-yr and 2-yr inflation expectations fell to a post- 2000 low, according to the RBNZ this morning in its survey of business managers. He writes, “NZD continues to be a favourite of yield-seekers.”
However, he notes that there was no indication in the minutes as to whether more cuts are forthcoming. Elsewhere, he notes that NZD meanwhile continued to recover despite the fact that NZ 1-yr and 2-yr inflation expectations fell to a post- 2000 low, according to the RBNZ this morning in its survey of business managers. He writes, “NZD continues to be a favourite of yield-seekers.”