Australia: More rate cuts in the offering from reserve bank – RBS

By FXStreet FXStreet (Delhi) – Brian Daingerfield, FX Trading Strategist at RBS, expects the reserve bank of Australia to be more dovish and may even introduce more rate cuts given the recent risks arising out of China in addition to the increase in domestic unemployment rates.

Key Quotes

“Macroprudential measures introduced late last year appear to be weighing on lending for investment in the housing market. Investment lending has fallen in two consecutive months.”

“Further declines in investment lending and home loans may give the RBA greater scope to ease monetary policy.”

“The RBA retains a generally positive stance on domestic employment, but with risks surrounding China intensifying, an increase in the unemployment rate in August (released Wednesday night / Thursday morning local time) could push the RBA toward a more dovish tone or even new rate cuts.”
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Source:: FX Street