Internet Banking

News

Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, General

The Reserve Bank of Australia left the official cash rate unchanged at 1.75% last week, as widely expected. The lack of forward guidance however was surprising and markets interpreted this as the RBA moving to a more neutral stance, reducing the pricing of a rate cut at the next (July 7th) RBA meeting to just above 15% probability. We still expect one more rate cut in this cycle, at the August meeting, after the June quarter CPI data, but it will be data-dependant.

Current futures pricing for the cash rate

Current futures pricing for the cash rate

Source: Rural Bank

 

Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank Limited accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank Limited ABN 74 083 938 416 AFSL 238042.