The Reserve Bank of Australia (RBA) cut its cash rate by a larger-than-expected 50bp to 3.75% today. We continue to expect conditions outside of the resources sector to be sluggish, as the currency remains high, fiscal policy is being tightened and the global economy is growing at a sub-trend pace. The upshot is that the RBA’s loosening cycle is not over. We have pencilled in a 25bp cut in August.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.