Market looks for a May rate cut
– A 25ps cut now priced at better than evens for May
– NAB’s view all year has been a mid-year cut likely. The recent run of data supports this. We continue to expect a cut in the next few months with May a good chance
– Looking ahead, we do not expect a quick succession of cuts from here. More likely one cut; a pause; and then another easing later in the year
– As well as the RBA, the Quarterly RBA Statement is due on Friday and important data is due over the coming week. Federal Budget Tuesday week
– Offshore: China trade data; NZ has its labour market report plus the RBNZ Financial Stability Review; Bank of England meeting this week
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NAB