Yesterday’s post on Australia and New Zealand cut expectations came true for the RBA.
The Reserve Bank of Australia announced a 100 basis points cut. The official cash rate is now 4.25%. This has been the fourth rate cut since September. The market was expecting a 75 basis points rate cut in order to decrease the interest rate differential between the current Australian rate 5.25% and the Fed 1.00%. The higher than expected cut temporarily boosted the Australian Dollar and depreciated the New Zealand dollar in early trading.
For more Australian Economic Indicators visit FXEconostats Australian Data
