National Australia Bank RBA forecast a 50bp Reserve Bank of Australia rate cut in May.
- followed by further 25bp cuts in July, August, November 2025
- and February 2026
To take rates to 2.6%, compared to NAB’s earlier
forecast for rates to fall to 3.1%.
Citing:
- “Risks to both global and domestic growth have shifted to
the downside” - “restrictive policy stance in Australia
is no longer appropriate” - situation with tariffs remains fluid, RBA could have scope to go slower should Trump dial back temper the levies, as he did on Wednesday
-
“for now, we think the distribution of risks to both
growth and inflation in Australia have shifted such that the
central bank is required to act with some sense of urgency”
This article was written by Eamonn Sheridan at www.forexlive.com.
Source link
