Stevens Rate-Cut Pressure Builds as Iron Melts: Australia Credit

Australia’s central bank faces pressure to resume interest-rate cuts as the economy suffers for its dependence on iron ore, which accounts for more than $1 out of every $5 of export income.

Traders see 64 percent odds Governor Glenn Stevens will cut the overnight cash rate target by a quarter percentage point to 2.25 percent within 12 months, the strongest chance since September 2013, a Credit Suisse Group AG index based on swaps shows. Money markets and economists see no move at tomorrow’s Reserve Bank of Australia meeting.