AUD To Pop, Then To Drop
The Reserve Bank of Australia is likely to keep the cash rate on hold at 3.0% at Tuesday morning’s policy decision. That’s the view of our Australia economics team, and about two thirds of economists surveyed by Bloomberg agree. The market has a more dovish disposition however, with about half a 25 bp cut now priced in. In fact, having become mostly convinced that the RBA had reached the end of its easing cycle only a month ago, the market’s 12m easing expectations increased sharply recently.
Click here to read the full report: UBS