Australia: RBA cut policy rate by 25 bps to historic low of 2.5% - ICICI Bank : Treasury Research

- The Reserve Bank of Australia (RBA) reduced the benchmark rate by 25 bps in line with expectations

- The RBA noted that domestic growth has remained below trend while inflation is well within the target

- The Central Bank expects further depreciation in the Aussie, which would foster economic rebalancing

- The RBA said that going ahead it would carefully asses economic outlook and adjust policy accordingly

- We expect the RBA to remain on status quo for the rest of 2013 and save policy ammunition for future.

Source : Equity Bulls

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