de | cn | ru

Market News

Australia C Bank Surprises Markets With 50 Bps Cut, Aussie Tumbles

May 01 2012


  • Australian C bank cut base rates by 50 bps in a surprise decision leaving most of the market participant in surprised state as not many expected the C bank to take such a dovish view of economic conditions
  • Bank said that cut was necessary to deliver appropriate rate of borrowing (Most of the mortage lenders have de marked their lending rates form RBA base rates in Australia)
  • It also said that Inflation will be lower than forecasted earlier but within RBA's target range (2-3 pct) for next 2 years
  • It also said that Housing market in Australia remains subdued
  • On global economic condition it said that US is growing at moderate pace while China has slowed down a expected, however it termed European conditions as very difficult


   "I think they have done the right thing. The economy is coming far weaker and inflation pressures have substantially receded. A 25 point (cut) would be meaningless, whereas a 50 basis point move will lead to decent reduction in borrowing costs." 

   "The economy is not certainly going to recover just because of the 50 point cut. I think it probably needs a couple more cuts going forward. I don't agree whether it may go in June. We might have to sit back to see the reaction to today's move. But I think it's likely we will see another one or two moves, probably going back with a 25 basis point pattern rather than 50. We will probably see cash rates down to 3.25 by the year end." 

-Shane Oliver, Chief Economist, AMP Capital Investors     

   "I think we are all surprised. I think it suggests that the RBA is pretty worried about where growth is headed and some aggressive monetary support was needed. 

   "There was uncertainty about what the commercial banks would do and whether they would pass on the full amount and that influenced the decision (to cut by 50 bps). 

   "I think the bias is towards more rate cuts. With the low inflation outlook it gives them scope to cut rates further."   

-Matthew Circosta, Economist, Moody's Economy.Com      

The material has been provided by Instaforex Company -
TAGS: Australia  C  Bank  Surprises  Markets  With  50  Bps  Cut    Aussie  Tumbles 

Related forex news

Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Cyprus, SVG CySEC MT5, Web,
$100 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5, Iress $100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website

More Forex Market News

SEC brings charges over fraudulent ICO that raised $600,000

Jan 22 2020 17:17:56

  The US Securities and Exchange Commission (SEC) has charged Sergii “Sergey” Grybniak and his company Opporty International, Inc. for conducting a fraudulent initial coin offering (ICO), which has scammed investors of $600,000 with unregistered digital asset securities. Read more

UK's FCA might ban credit card deposits with online forex and CFD brokers

Jan 20 2020 18:21:17

After earlier this month the UK Gambling Commission (UKGC) announced that after April 14th 2020 clients of gaming websites will no longer be able to use credit cards to fund their bets, some experts and analysts say it is high time that the UK's Financial Conduct Authority (FCA) do the same, as quit... Read more

The CNMV remains vigilant, blacklists Forbslab and eTrader247

Jan 20 2020 14:32:21

 Unregulated forex brokers Forbslab and eTrader247, along with several other alleged scammers, have been the latest additions to the warning list of Spanish financial watchdog – the Comision Nacional del Mercado de Valores (CNMV). Read more

Crypto scammer Patrick McDonnell sentenced to 33 months of imprisonment

Jan 17 2020 14:54:19

Patrick McDonnell, CEO of Coin Drop Markets, was sentenced to 33 months in federal prison and also ordered to pay $224,350 in restitution, after pleading guilty to cryptocurrency fraud last year. The Federal court in Brooklyn issued the sentence on Thursday. Read more

UK's FCA expects up to 10% decline of profits in the forex industry

Jan 16 2020 17:47:56

The Financial Conduct Authority (FCA) expects that the new regulations imposed on the retail forex and CFD brokers in the UK will lead to an overall reduction of their profits of between 6% and 10% - a decline which by the year 2021 may reach between 38.5 million GBP and 55.3 million GBP. Read more

UK’s FCA updates its warning list with A.B.Capitals and LincolnFX

Jan 16 2020 16:48:27

  Another bunch of brokers have made it to the warning list of UK’s Financial Conduct Authority since the beginning of 2020. We’ll focus on two of them - A.B. Read more

Coinbase will pay $1 mln to victims of the Cryptsy hack attack

Jan 15 2020 18:06:18

Coinbase, the San Francisco based crypto exchange, has agreed to pay 962500 USD as a compensation  to victims of the Cryptsy hacker attack, in an out of court settlement, court papers reveal. Read more

Clients of FXFINPRO to be invited to file compensation claims

Jan 15 2020 14:32:03

  Clients of now-defunct forex brokerage FXFINPRO will be invited to submit compensation applications by the Investor Compensation Fund (ICF), the Cyprus Securities Exchange Commission (CySEC) announced on Monday. Read more

Australians were scammed for $42.5 mln in 2019 alone

Jan 14 2020 14:08:08

Australians have lost some 61.61 mln AUD (42.5 mln USD) in investment scams in 2019 alone, the latest data of the Australian Competition and Consumer Commission (ACCC) reveals. Read more

Chinese investors lost an average of $20k to crypto scams in 2019

Jan 14 2020 13:06:44

  Chinese crypto investors who have been scammed in 2019 reportedly lost nearly $20k each (134,522 yuan), according to the 2019 Cyber Fraud Trend Research Report, published previous week. Read more

de | cn | ru