FXStreet (Bali) – The Australian Financial Review – AFR – is reporting that the RBA is unlikely to cut rates on Tuesday, despite continued local weakness.
Key Quotes
“The Reserve Bank of Australia looks likely to hold the cash rate at 2 per cent when the board meets on Tuesday, despite continued sluggishness in the domestic economy and uncertainty about global growth and markets.”
“Not one of the 28 economists surveyed by Bloomberg is tipping a third cut in the current cycle, after quarter-point reductions in February and May aimed at stimulating consumer demand and non-resource investment.”
“Despite recent softness in domestic data – including a disastrous first-quarter capital expenditure survey last week – most economists say another cut so soon after the second would do little more than stoke further house price inflation, particularly in Sydney. The RBA will also be keen to review more data before making another call on interest rates.”
(Market News Provided by FXstreet)