Will the RBA cut interest rates in May?

National Australia Bank is the first of the country's big lenders to predict a cut to the Reserve Bank of Australia’s official cash interest rate next Tuesday's May board meeting.

The Australia Bureau of Statistics reported headline deflation for the first three months of 2016, for the first time since 2008, putting pressure on the RBA to raise rates.

JPMorgan, Macquarie, HSBC, Goldman Sachs and Capital Economics are also predicting a May move.

The RBA’s official cash interest rate is currently set at 2.0 per cent.

Source: Sydney Morning Herald

Advertisements