RBA to stay on hold, RBNZ to cut the cash rate by 25bps - TDS

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.”