Will RBA Cut Interest Rates Next Week? - Forex News by FX Leaders

Will RBA Cut Interest Rates Next Week?

Posted Friday, May 3, 2019 by
Arslan Butt • 1 min read

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

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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