A report in the Australian Financial Review says analysts expect two 25 basis point rate cuts from the RBA over the next 12 months.

A Credit Suisse index of where markets expect interest rates to be in 12 months stood at 2.44 per cent on Sunday, the lowest recorded level in 2013.

  • The article cites the unemployment rate rising from 5.4% to 5.6% (April 11 release)
  • Weaker Chinese GDP data revealed growth less than 8%
  • The latest inflation report shows ‘benign’ levels, thus inflation is not a constraint on further cuts
  • US GDP figures from Friday showing slower than expected growth

Analysts change tune on RBA rate cuts (may be gated)

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The next RBA meeting is May 7, expect plenty of ‘will they or wont they’ discussion ahead of this.