"The Australian dollar nudged up 0.15% to $0.6987 after the rate decision as a cut was fully priced-in. "I don’t think that the RBA will be in a hurry to push rates down, preferring more support from government spending to lift economic activity," said Kerry Craig, global market strategist at JP Morgan Asset Management. "By their own admission the RBA knows that cutting rates when they are already at historical lows will be less effective, especially when set against the highly indebted household sector," Craig added. "Another, stronger, call for a coordinated policy response from the government may limit the need for cuts in 2020. "In a further boost to borrowers, Australia and New Zealand Banking Group said immediately after the RBA's decision that it would lower its mortgage rates by 18 basis points.Other banks were expected to follow suit after Treasurer Josh Frydenberg told the heads of the country's Big Four banks the government wants them to pass on the rate cut in full.Last month, Australia's prudential regulator proposed lowering stress-test limits for mortgages.

Source: The Star June 04, 2019 05:03 UTC