Bloomberg now believes there is a 75% chance the Reserve Bank of Australia (RBA) would cut rates to fresh record lows next month, according to Commonwealth Securities Limited (@CommSec).
RBA’s Governor Lowe said early Thursday that rates could be cut to 0.10% from the current record low of 0.25%.
Lowe reiterated that the bank doesn’t expect rates to go higher for at least three years and is looking at Australia’s 10-year government bond yield. which is highest in the developed world.
The weak Aussie jobs data released at 00:30 GMT validated the case for an additional rate. The economy shed 29.5K jobs in September following August’s 111K additions, and the unemployment rate rose to 6.9% from 6.8%.
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