Commonwealth Bank of Australia (CBA) now sees the Reserve Bank of Australia (RBA) lowering its benchmark interest rates by 25 basis points to 0.5% in April
instead of at the central bank’s next meeting scheduled to happen on Feb. 4.
The change of forecast comes on the heels of an upbeat Australian employment report released at 00:30 GMT, which sent the Australian dollar higher and tempered
market expectations for a rate reduction at the Feb. 4 meeting.
CBA’s decision to push back rate cut forecast could only strengthen the bid tone around the AUD. At press time, AUD/USD is trading at session highs near 0.6875, representing a 0.47% gain on the day.
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