Citi are looking for a Reserve Bank of Australia rate cut in May, with another to follow.
- The bank saying the second cut could well follow the next month, in June.
- Citi had previously been calling the RBA on hold.
- Citing the inflation result … 'should now be little resistance' to further monetary policy stimulus, despite improving China, resilient labour market, household debt at high levels.
RBC also looking for a rate cut in May, with another to follow in August:
- say core inflation is running opposite to RBA forecasts, is 'stubbornly low'
- expect that the sustained sub trend growth paves the way for an eventual softness in the labour market, which will raise the unemployment rate
- RBA tolerance for ongoing undershooting of its target for inflation is 'waning quickly'
JP Morgan - going with May and June with a risk of 'more to come'
- were previously at at July and August
ICYMI - earlier:
- Does this algo hold the key for an RBA rate cut?
- AUD drop on CPI's flat headline results, core measures under expectations also
- Australia Q1 CPI, headline 0.0% q/q (expected 0.2%)
