UBS on the Reserve Bank of Australia
Citing:
- accelerating falls in house prices
- sharply slowing economy
- credit tightening playing out - risk of credit crunch rising
- while calling for July first cut, won't rule out earlier if unemployment rate rises
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After the poor GDP data yesterday a few banks said they were looking now for RBA rate cuts.Not all though, these mixed calls I posted this morning:
- JPM Asset Management on reasons to be bullish AUD
- Morgan Stanley still bearish AUD, says data in contrast with RBA outlook
- HSBC on the RBA, still expect the next rate move to be up
Data just out from Australia is good on trade and not good on retail sales
