RBA to cut cash rate by 25bps in August and November this year - Westpac

Dhwani Mehta FXStreet

The Westpac analysts have made revisions to the Reserve Bank of Australia (RBA) cash rate forecasts for the first time in couple of years, now calling for a 25 bps rate cut each in August and November this year from the rates on hold stance.

Key Quotes:

“WPAC have revised GDP growth forecasts for 2019 and 2020 from 2.6% to 2.2%.

With slower growth profile now expect to see the unemployment rate to 5.5% by late 2019.

That makes a strong case for official rate cuts to cushion the downturn and, in turn, meet the RBA's medium term objectives.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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