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Will RBA cut rates further?

Bank of Australia governor Ian Macfarlane was in the Australian media overnight speaking about the direction global growth is headed and what effect that is having on monetary policy decisions at home. It was his comments around on the Aussie Dollar and why current governor Glenn Stevens and the RBA felt they ‘had to’ cut rates earlier this month that pricked my trading interest. Read more...

RBA worried about low inflation

Australia's recent dip into deflationary territory is unlikely to have been a one off and could prompt further interest rate cuts this year, the Reserve Bank has signalled. According to the minutes from its May meeting, where the cash rate was cut to 1.75% on budget day, the RBA board was briefed about "ongoing inflation trends" and that the outlook could be lower for longer. Referring to the March CPI result where inflation went backwards by 0.2 per cent, the board was told that the data "were less subject to measurement error than many other key data series".
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BoE left interest rates at record low

The Bank of England cut its growth forecasts and issued its strongest warning yet that a vote to leave the European Union would hurt the economy. With just six weeks to go until Britain’s referendum, the nine-member Monetary Policy Committee, led by Governor Mark Carney, said there were more signs it was weighing on growth and clouding the outlook. Officials unanimously agreed to maintain their benchmark rate at a record-low 0.5 percent, saying inflation remains subdued.
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ECB's Constancio: Other actors need to play their part

Speaking at the International Financials services event in London ECB member Constanico said that besides the ECB's determination to pursue its expansionary policies, other actors need to do their part. Uncertainties remain and further bouts of volatility cannot be precluded. ECB will continue to do what is necessary to achieve its goal of reaching a level of inflation close to 2% and enough policy tools can still be used, he said. 
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