ANZ on the RBA - rate cuts ahead on August and November
A snippet from ANZ on their outlook for the Reserve Bank of Australia.
- Further support for the economy is likely to be required in 2020
- gathering global uncertainties
ANZ looking for something other than rate cuts from the RBA too ….
We think the Bank will likely reach for tools other than the cash rate
- explicit forward guidance the possible first choice
- there is considerable uncertainty about this, however, given the varying approaches that other countries have taken to the zero bound for interest rates
ANZ do see further rate cuts though:
- 25bp cut in August (August 6)
- 25 bp cut in November (November 5)
The background to this is of course the first rate cut from the RBA that took place on Tuesday (4 June)
- and the poor GDP results for Australia, data released June 5,