Westpac brings forward RBA rate cut call to July from August


Commentary by the firm’s chief economist, Bill Evans

  • A pause between cuts might have allowed for a smoother transmission process
  • But cannot deny the explicit signals provided by Lowe’s more recent speech
  • Early days for interpreting Lowe’s language at a time when policy is active
  • Based on previous experience with other central bankers, the language is direct
  • As such, we now expect a cut in July that will substitute for the move originally expected in August


The RBA will meet again next Tuesday and currently, the cash rate futures indicate that there is a ~84% probability of the central bank cutting rates by another 25 bps at its upcoming meeting. I reckon that’s a real possibility after Lowe’s remarks last week here which gave rather firm signals of such a move.

They’re already behind the curve when it comes to acting on this matter so consecutive cuts is certainly not out of the picture.

Articles You May Like

US stocks open higher. S&P index back above 3000
GBPUSD failed for the 2nd week in a row below 2018 lows
Morgan Stanley loves these stocks into earnings, while others on Wall Street do not
Nikkei 225 closes higher by 2.00% at 21,466.99
The USD is the strongest and EUR is the weakest as the week moves to a close

Leave a Reply

Your email address will not be published. Required fields are marked *