ANZ update their projections for the rba Reserve Bank of Australia
- RBA seems to be in a hurry to get the cash rate lower
- we have brought forward the expected rate cuts to July and August
- After August, we think the RBA will pause for a period
Further out:
- combination of lower interest rates
- a much flatter yield curve
- lower AUD
- and tax cuts
- will provide the boost the economy needs to get back onto a growth path that will push the unemployment rate lower over 2020
Even further out:
- more stimulus may eventually be required
- In particular, we are concerned that the global evolution of monetary policy may mean the AUD struggles to move lower.
Bolding mine