RBA expected to cut rates in August – TDS

Strategists at TD Securities expects the RBA to cut its benchmark rate by 25 bps at its meeting in August.

Key Quotes

“RBA reminded us last week that it was upbeat, citing that low interest rates and the weaker AUD were supporting growth”.

“Post Brexit vote, our new views on the global economy are (1) delayed Fed tightening into mid 2017 and (2) BoE slashing by - 50bp by August”.

“The fresh global downdraft could see the RBA reintroduce an explicit easing bias, citing offshore risks, but is far from a done deal. We still look for an August cut to 1.5%”.