RBA rate cut 'a bridge too far' – JP Morgan

In the view of Bob Michele, Global Head of fixed income at JP Morgan Asset Management, the Reserve Bank of Australia (RBA) is seen standing pat on the interest rates for the foreseeable future.

Key Quotes:

“Thinks RBA will holds rates at 1.50% 'for the foreseeable future'.

Adopting a more dovish stance does not mean a rate cut is imminent.

Thinks that is probably 'a bridge too far' for the RBA.

AUD looks and feels 'cheap'.

There is a widespread view that USD will fall and currencies like AUD will go up.”