26 May 2015
RBA could cut rates twice to 1.5% - Capital Economics
FXStreet (Barcelona) - Paul Dales, Chief Australia & New Zealand Economist at Capital Economics, expects the RBA to cut rates twice at the August and the November meetings and take Australian interest rates at a new low of 1.5%.
Key Quotes
“While the Reserve Bank of Australia (RBA) is highly likely to leave interest rates on hold at 2.0% at its policy meeting on Tuesday 2nd June, we think it will cut rates further later this year. Our forecast that rates will be reduced by 0.25% at the August and November meetings would take rates down to 1.5% by the end of the year, which would be below the level currently priced into the markets."
Key Quotes
“While the Reserve Bank of Australia (RBA) is highly likely to leave interest rates on hold at 2.0% at its policy meeting on Tuesday 2nd June, we think it will cut rates further later this year. Our forecast that rates will be reduced by 0.25% at the August and November meetings would take rates down to 1.5% by the end of the year, which would be below the level currently priced into the markets."