Monday, 6 April 2015

Cut or Not To Cut…

Blog post 2 | 3rd February 2015

Cut or Not To Cut…

As we get closer to the release of the RBA’s interest rate decision release today at 2.30pm AEDT, one of the key factors they will need to take into account is the Bank Accepted Bills (BAB) data which estimates end of day bank bill rates. See Chart 2.1 below:

Chart 2.1

Without an interest rate cut and an increase in the supply of liquidity, the cost of funding between the banks in the short-term will undoubtedly rise.  

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