RBA Rate Decision
Written February 2, 2009 at 10:37 PM EST by Alex Chernomordin
The RBA rate decision which was widely expected to be a 100 basis point cut from 4.25% to 3.25% came in as expected. The expectations were relatively split as a large number of economists surveyed predicted only a 75 basis point cut, perhaps keeping the Aussie bid throughout the session. The RBA released the following comments accompanying the release:
- Significant deterioration in World Economy.
- Major economies contracted sharply in the 4th quarter.
- Chinese growth has slowed dramatically.
- Turmoil and global downturn has dampened confidence.
- Inflation has begun to moderate, likely to continue to decline.
- Australian financial system in strong position.
- Rate cuts and stimulus will help cushion economy.
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