In view of analysts at TD Securities, the RBA Board is likely to keep the cash rate on hold at 1% at its 6th Aug meeting but expects the RBNZ to cut the cash rate by 25bps to 1.25% on 7th Aug.
Key Quotes
“The RBA’s Statement on Monetary Policy (SoMP) is likely to reveal near term cuts to GDP, likely cuts to underlying inflation, and a near term uplift in the unemployment rate.”
“The RBNZ’s projections are likely to show downward revisions to the Bank’s GDP forecasts and a lower cash rate profile.”
“Ultimately we anticipate the latest set of forecasts reinforcing our current RBA and RBNZ calls for further easing.”
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