In the view of the analysts at Societe Generale, the Reserve Bank of Australia (RBA) is more likely to cut its benchmark interest rate going forward, in the face of dwindling US and global growth prospects.
Key Quotes:
“Since the RBA’s previous meeting in December, prospects for the global economy have deteriorated markedly.
Several other central banks have shifted their guidance – some rather radically.
Australia’s economy looks notably less strong than it did.
We have ditched the view that rate normalisation would begin in May of this year.
Indeed, with the US economy likely to slide into recession in 2020, we believe the next RBA rate move is more likely to be a cut than a hike.”
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