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Australia is the only country in the G20 that is considering a cut in the key interest rate
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Loading...Since the last RBA decision on the base interest rate on May 2, the chance of a lower interest rate has increased twice. For now, Governor Philippe Lowe is expected to keep interest rates at 1.50%.
On the other hand, signs of a downturn in the housing market may give the bank the freedom to reduce the base interest rate.
Over the last few weeks, there has been a decline in GDP, with most economists expecting a decline throughout the first quarter. This is due to 0.7% decline in construction and modest growth in business costs of 0.3%.
RBA is of the opinion that in the second quarter of the year, we are likely to see even a recession in the country's economy. For this reason, the probability of lowering the key interest rate is high, and if that happens, we will see a fall in the Australian dollar.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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