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RBA may eventually cut rates to 0.5%

We expect the Reserve Bank of Australia to cut interest rates to 1.0% at the meeting on Tuesday 2nd July. And given that the Bank would like to see a much lower unemployment rate, we now think that rates may eventually fall to 0.5%. We believe that this marks the floor for policy rates and lifts the probability that the Bank may launch QE over the next few years.
Marcel Thieliant Senior Japan, Australia & New Zealand Economist
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More from Marcel Thieliant

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1 June 2021
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