Australia: Annual growth to dip below 2%, RBA to cut - ANZ

According to analysts at ANZ, it’s going to be a big next week for the Australian economy, with an RBA rate cut expected and key economic data due out (current account, retail sales and GDP being the highlights).

Key Quotes

“The RBA Governor is speaking in Sydney on Tuesday evening.”

“We and the market will be shocked if the RBA doesn’t cut in June. Of more interest will be any clues it might provide about action beyond that. If the post-board meeting statement doesn’t provide any clues, attention will switch to the Governor’s speech that evening.”

“As for the data, we expect the smallest current account deficit relative to GDP since the 1970s. Retail sales look likely to be flat for the month of April, but we expect Q1 GDP to be better than the second half of last year and in line with what the RBA expects.”