Market nerves as RBA meets.

Australasian Business Intelligence, June, 2003

Jun 29, 2003 (The Age - ABIX via COMTEX)

The board of the Reserve Bank of Australia (RBA) will meet on 1 July 2003 to discuss monetary policy settings. While the central bank is widely expected to cut official interest rates, AMP Henderson Global Investors' Shane Oliver believes the RBA faces a tough decision. He believes that because the US Federal Reserve cut US interest rates by 25 instead of 50 basis points in the week ending 27 June 2003, the RBA may not feel the need to do the same, despite the stronger Australian dollar and talk of a global recession. Oliver believes the RBA will hold off cutting rates until August 2003. If the bank does cut rates in July, however, the Australian sharemarket is expected to continue its recent rally. The S&P/ASX 200 share...

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