Will RBA Cut Interest Rates Next Week?

The Reserve Bank of Australia meeting scheduled for May 7 will most likely see the central bank announce a cut in interest rates in a bid to improve Australian economic health.

In recent months, the economy has seen house prices falling, consumer inflation remaining weak, and not enough of a wage growth. Markets are expecting a rate cut by 25 basis points to be announced next Tuesday.

Wage growth has picked up to 2.3% but this has not yet had any impact on the inflation figures. The headline inflation went down to 0.1% in Q1 2019, putting annual inflation to a low of 1.3% from 1.8%.

AUD/USD has been struggling ever since the weak inflation figures were released, and is now trading below 0.7000.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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