Central Bank Watch
Australia’s 50-Basis Point Rate Cut
May 1, 2012
The RBA Board cut the official cash rate to 3.75%, lowest in 26 months, beating expectations of a 25-bp reduction. Policymakers in a statement of explanation said this larger-sized move would “be necessary in order to deliver the appropriate level of borrowing rates” and was “appropriate” in light of moderating inflation and somewhat weaker-than-expected economic […] More
New Overnight Developments Abroad - Daily Update
An Outsized Interest Rate Cut by Australia’s Central Bank
May 1, 2012
The Reserve Bank of Australia’s Official Cash Rate was slashed by 50 basis points to 3.75%, twice the expected reduction. The Aussie dollar and kiwi in response fell by 1.1% and 0.7% against the greenback. The U.S. dollar otherwise rose 0.2% against sterling and 0.1% versus the yen and yuan while edging down 0.2% against […] More
