Analysts suggest rate cut expectations overstated following RBA hold

The Reserve Bank of Australia (RBA)'s surprise decision to leave cash rates unchanged at 4.25 per cent at its February 7 meeting has caused some strategists to reduce their expectations for the extent of rate cuts likely in 2012. While acknowledging that the outcome in Australia will be dictated to a large extent by global events, the tone of several research reports released after the RBA announcement leans towards reduced rate cut expectations.