High profile Australian stockbroker Bell Potter’s Charlie Aitken is out with some fighting words aimed at the Reserve Bank of Australia today:

  • Says the RBA is “well behind the curve, both metaphorically and literally”
  • “I am of the view a 25bp rate cut on Tuesday afternoon is a certainty”
  • “a 25bp rate cut is now 100% priced into the Australian bond market, the Australian Dollar and Australian equities”
  • “Don’t believe anything you read about only “50%” of economists predicting a rate cut on Tuesday. The Australian financial markets are fully discounting the rate cut and in my view it is 100% priced in”
  • “The risk the RBA board faces is NOT delivering on the markets expectations. It would a terrible misjudgement to feel the Australian Dollar has fallen and NOT to cut rates. … The RBA needs to deliver on the financial markets expectations or be prepared to watch the AUD move quickly back above 8o”
  • “I expect no dramatic price reaction to confirmation of the rate cut, the only dramatic price reaction would come if I am proved wrong and the RBA stands pat.”