Strength of economy ‘overestimated’ - RBA
(17 April 2012 – Australia) Minutes released from the Reserve Bank of Australia (RBA) April board meeting has heightened expectations of a May interest rate cut, with the minutes suggesting the Bank ‘overestimated’ the strength of the Australian economy.
Monetary policy has been kept tight since December based on economic expectations which the Bank now concedes were wrong.
The RBA also anticipates funding cost pressures on Australian banks due to the high interest rates offered on term deposits.
The RBA also anticipates funding cost pressures on Australian banks due to the high interest rates offered on term deposits.
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