Central Banks

ICYMI – AUD drop as Westpac forecasts 3 rate cuts from the RBA this year

Westpac were calling two rate cuts, they have been ahead of the pack on this

In February they forecast June and November 

  • earlier this week, in light of RBA Governor Lowe’s speech they revised to June and August

Moving quickly again the call is now

  • June
  • August
  • November

A 25bp point cut at each of those meetings to bring the Australian cash rate down to 0.75%.
(A bit more at the earlier post here: AUD has dropped a little:

Three rate cuts in the six months ahead? Cuts to the rate in quick succession are certainly not unheard of. 

Is the economy in such bad shape as to need 3 in 6 months? Big call. 

Maybe Dr. Lowe will surprise me.

RBA cash rate history graph


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