Watching CNBC this morning it seems that anything from 50 – 200 bps are being touted as possibilities for today’s move by the RBA. Personally, i think we will see 100 bps as anything more that this would send a scarey signal to the markets, unintentionally or not and mix things up a little more than they need to be at this moment in time.
It wasnt that long ago that the BOE cut rates by 100 bps and completely threw the cable into a freefall as well as telling the rest of the world their economy was going to hell in a handbasket and FAST! Fortunately the BOE has softened the markets up for us and a 100 bps rate cut will probably see the AUD rally given that we have already priced it in.
