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31 Mar 2015
RBA cut to 2.0% in April or May done deal - Capital Economics
FXStreet (Bali) - A rate cut to 2.0% at either the April or May meeting seems a done deal, notes Paul Dales, Chief Australia & New Zealand Economist at Capital Economist.
Key Quotes
"Regardless of whether the Reserve Bank of Australia (RBA) cuts interest rates from the current rate of 2.25% to 2.00% at the April or May policy meeting (we slightly favour a move at the meeting on Tuesday 7th April), the main point is that this is unlikely to mark the end of the loosening cycle."
"Our forecast that the RBA will reduce rates to 1.5% by the end of this year incorporates more cuts than the markets currently expect."
Key Quotes
"Regardless of whether the Reserve Bank of Australia (RBA) cuts interest rates from the current rate of 2.25% to 2.00% at the April or May policy meeting (we slightly favour a move at the meeting on Tuesday 7th April), the main point is that this is unlikely to mark the end of the loosening cycle."
"Our forecast that the RBA will reduce rates to 1.5% by the end of this year incorporates more cuts than the markets currently expect."