CBA outlook for the RBA following this week's rate cut and yesterday's weak GBP reading
CBA tipping more cuts ahead from the RBA.
On the GDP, CBA see some light at the end of the tunnel (no, not an oncoming locomotive). In very brief:
- This is the lowest annual rate of GDP growth since Q1 2009
- Policy stimulus from lower interest rates and tax cuts means economic growth should be stronger in H2 2019
- outcome appears to be a little lower than the RBA would have been expecting
- We expect the RBA to follow up this week's cash rate cut with a further 25 basis point cut in August