Tuesday, October 2, 2012

RBA Cuts Rates By 25bps

RBA Cuts Rates By 25bps, as widely expected. 

Important take aways from report:

  • Terms of trade will probably decline further.
  • China growth slowed and key Australia commodity prices 'significantly lower'.
  • Growth 'a little weaker'. AUD too high. 
  • China growth slowed and near-term prospects more uncertain. Not extreme.
  • Mining investment may peak at a lower level that previously expected.
  • Credit growth has softened as of late and growth outlook for next year looked 'a little weaker' 
  • Risk to global GDP outlook still seen to downside.

Will add the complete report link here as soon as I saw it. 

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