The Reserve Bank of Australia is expected to slash its forecasts for the Australian economy in its statement on monetary policy, to be released on Friday. The RBA meets tomorrow, with a 31% chance of a 0.25% rate cut. It will come a week before the Labour Government delivers its second budget, where it could reveal a fiscal deficit of over A$200 bio over the next four years. Unemployment figures are also due this Thursday, with early forecasts predicting a rise in umemployment in April to 5.9% form 5.7% in March.