With Australia's economic recovery faltering, there is a growing risk that the RBA will cut rates at its next meeting in July, rather than in August as we currently forecast. However, even if the Bank were to front-load rate easing to a greater degree, it would likely remain reluctant to shift policy to an outright expansionary stance, given that capacity pressures remain elevated. Accordingly, we continue to believe that the RBA won’t cut rates as far as markets are currently pricing in.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.