Economics
Australia Has Become a Lonely Rate-Cut Candidate
- Market bets increase on year-end easing with GDP looking weak
- All economists expect cash rate on hold at Tuesday meeting
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A month can be a long time in economics.
Since the Reserve Bank of Australia’s last policy decision on May 2, market bets on an interest-rate cut by the end of this year have doubled. While that chance is still only about 20 percent, swaps traders see Australia as one of just two developed economies where cuts are possible in the coming year after data during May pointed to anemic growth in the first quarter.