The mixed tone of the data released since the Reserve Bank of Australia’s (RBA) last policy meeting probably isn’t enough to spur the Bank to cut interest rates from 2.0% at the meeting scheduled for Tuesday 7th July. The wildcard is the crisis in the euro-zone. Should events in Europe send the financial markets into a tailspin early next week, the RBA may act. Otherwise, we suspect it will leave the door open to further easing and, if the domestic economic data weaken as we expect, rates may yet be cut to 1.5% by December.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services