Latest Central Bank Expectations: RBA to Cut 125bp?!

Here are the latest central bank rate cut/hike expectations. Nothing priced in for the Fed, BoE or ECB (though I expect the latter two to pull the trigger on more stimulus in the coming months).

RBA – Investors are pricing in 125bp of easing from the Reserve Bank of Australia by the end of the year! I have been bearish the AUD but 125bp is a FAR out of line. At most the RBA will lower rates by another 75bp and more likely only 50bp by Dec.

RBNZ – Investors are also looking for 50bp of easing from the Reserve Bank of New Zealand.

In the Financial Papers: Today’s Top Forex News 04.07.08

kathysmallHere is the “In the Financial Papers Radio Broadcast” (Length: 06:07 minutes). The player should load automatically. Please let me know if you like it. Contact Kathy

In the Financial Papers:


Podcast Covers:
G7 Meeting
BoE ECB Rate Decisions
IMF Calls for Helps on Turmoil
Shirakawa nominated as BOJ governor
China to Allow Banks to Invest in US Stocks