RBA: Markets pricing around 55% chance of a cut in August - Westpac

Imre Speizer, NZ Market Strategist at Westpac, notes that the RBA cut the cash rate for the first time in 12 months in May, to 1.75%.

Key Quotes

“The move was about 50% priced in following Australia’s stunningly low Q1 CPI data. The decision was clearly explained as following “information showing inflationary pressures are lower than expected.”

The key data ahead of the 2 August meeting will be Q2 CPI on 27 July. Markets are pricing around a 55% chance of a cut in August, and around 55% chance of a further move to 1.25% next year.”