MNI ANALYSIS: Even as it remained alert to......>

RBA: MNI ANALYSIS: Even as it remained alert to developments in the money

market, the Reserve Bank of Australia's quiet confidence that competition for

home loan business would prevent any significant rise in mortgage rates was

somewhat vindicated recently as one of Australia's big four banks, the

Commonwealth Bank, lowered interest rates on some mortgage products. The RBA is

also likely to take comfort from the fall in the bank bill swap rate (BBSW) from

its recent peak, and these two developments taken together significantly reduce

the risk of a further easing in the cash rate, at least to the extent that such

a risk was tied to money market developments.

- For full story see MNI Main Wire at 07:21 BST 08/01, or contact us for access.