The Reserve Bank of Australia is expected to cut its cash rate target by 25 bps bringing it to 3.85% vs 4.10% prior. Focus will be on macro forecasts and forward guidance.
I think the RBA will keep its neutral stance as it lowers the cash rate just as acknowledgement of inflation progress and as an “insurance” for some potential slowdown given the recent economic uncertainty.
This article was written by Giuseppe Dellamotta at www.forexlive.com.