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Old 01-11-2011, 08:44 AM   #2
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Lightbulb "RBA lowered the benchmark interest rate"(2011-11-01)

The Reserve bank of Australia lowered its benchmark interest rate from 4.75% to 4.50%. The majority of the economists now agree that the RBA is unlikely to start the easing cycle.

Analysts at HSBC claim that as long as Aussie remains strong, the central bank will be less concerned about inflation that will prevent it from decreasing the borrowing costs. In addition RBA’s statement doesn’t contain hints at further rate cuts. According to the specialists, RBA’s approach has switched to neutral.

Strategists at ANZ aren’t sure about the central bank’s neutral position but say that they don’t expect another easing move in December naming February as the potential time when the next cut arrives. Analysts at St. George Bank look forward to only one more rate reduction in March.

Australian dollar fell versus its US counterpart from today’s maximum at $1.0566 to the levels below $1.0450.

Chart. Daily AUD/USD

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