Reuters poll of analysts re expecations of what’s to come from the RBA:
Reserve Bank of Australia to cut cash rate to 3.85% on May 20, say 42 of 43 economists
- one forecasts 50 bps cut (of the big 4 Australian banks ANZ, CBA and WPAC are tipping a 25bp cut next week, NAB a 50bp cut)
- to cut cash rate to 3.35% by end of 2025 according to the median forecast
In the report, Reuters quote ANZ:
- “Following tariff news at the start of April, we shifted our
expectations. We’re expecting the cash rate will go to 3.35%
now. That shift was really a rough lesson of a very changing,
uncertain global environment where global growth was likely to
slow,” - “There are indications some of those tariff announcements
are going to be wound back but the big question is how this
actually shakes consumer confidence and how businesses are
feeling… There is some clear softness in the business
environment, which would support a rate cut from the RBA next
week.”
This article was written by Eamonn Sheridan at www.forexlive.com.
