- Risks to global outlook still seen on downside.
- Full effects of earlier cuts yet to be observed.
- Recent data suggest Chinese growth has stabilised.
- Recent data shows resource investment peak approaches.
- Easier policy is to help foster sustainable growth.
- AUD remains higher than might be expected.
- Signs easier policy starting to work.
- Inflation is to stay within target next 1 or 2 years.
- Expects unemployment to edge higher, contain wage costs.
- Key commodity prices significantly lower.
Reaction details (22:40)
- AUD/USD initially moved 16 pips to the downsie from 1.4026 to 1.4010.
- Two minutes after, the pair spiked higher by 40 pips to 1.4050, trades 1.0448 (+22pips) last.
- WTI Crude futures moved up USD 0.19 from USD 88.72 to USD 88.91 following this rate decision.
- ASX 200 fell 0.10% in the following 2 minutes, trades 4518.10 last.
Analysis details (23:00)
- As the 25bps rate cut has already been largely priced in, we've seen the strengthening AUD across the board.
- This is RBA's last decision until February 2013.
03 Dec 2012 - 22:30 - - Source: Newswires
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