RBA seen cutting rates two more times to 0.75% this year – Reuters poll

According to the latest Reuters poll of economists, a majority of them expect the Reserve Bank of Australia (RBA) to cut the Official Cash Rate (OCR) by 25bps to a record low of 1.00% at its monthly meeting next Tuesday.  

Key Findings:

“Nearly 70% of 40 economists surveyed this week, including those from the country’s biggest banks, expect RBA to cut rates to 1.00% next week.

And a slim majority, or 20 of 38 surveyed, see the chance of another cut to 0.75% by year-end.

As many as three are predicting the cash rate at 0.50% while only 15 see the central bank holding at 1.00%.

That is a significant shift from the previous poll in late May, when most economists predicted the RBA would pause at 1.00%.”