According to analysts at TD Securities, the RBA cash rate is widely expected to remain at 1.5% tomorrow.
Key Quotes
“While this meeting was supposed to be a sleeper, after the RBNZ switched to an explicit easing bias on the 27th all eyes on the RBA to see if it follows and switches to an explicit easing bias.”
“Later that evening, the 2019/20 Budget is brought down. Usually the annual Budget is released on the second Tuesday in May, but was brought forward to allow for a May general election. The 2019/20 surplus is expected to remain at around $A4b or +0.2% of GDP, with surpluses being banked across the outyears to prove fiscal responsibility. As the government financial statistics to February revealed, the bottom line is $4b better than expected in December due to higher revenues and lower spending on social security. So look for a commitment to deliver earlier and deeper personal tax cuts to middle and higher income households ahead of the election.”
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