RBA to cut 25bps at its August meeting – RBC CM

Research Team at RBC Capital Markets, expects the RBA to cut 25bps at its August meeting.

Key Quotes

“Q2 CPI confirmed that inflation is undershooting the target, and the leading indicators suggest that this will persist for several quarters. The RBA’s forecasts are likely to suggest the same, which should provide the board with a case to ease. As ever, the RBA’s reluctant nature provides some uncertainty, and we do not expect an overtly downbeat assessment to be provided in its communication. Indeed, growth forecasts, if anything, are likely to be revised higher.”