RBA set to cut rates, finally

Briefly in today’s #5in5withANZ podcast below:

The Reserve Bank of Australia is expected to finally cut rates this week. However, the Aussie dollar is firmer this morning and may rise more as global markets take some of the Trump tariff premium out of the US dollar.

5 things to know in 5 minutes:

1. The big event to watch this week is the Reserve Bank of Australia’s rates decision tomorrow afternoon, when it is expected to cut 25 bps to 4.1%, as ANZ’s Group Chief Economist Richard Yetsenga
2. That US dollar weakness seen over the weekend is a theme to watch, and may overtake the global focus on US interest rates, says Richard.
3. ANZ’s Head of FX Research Mahjabeen Zaman, GAICD will also be watching how the RBA’s decision and language about future cuts affect the Aussie dollar.
4. The euro has firmed on hopes for peace deal in Ukraine, but Mahjabeen still sees potential for more weakness towards parity vs the US dollar.
5. New Zealand’s Performance of Manufacturing Index showed an expansion in January for the first time in nearly two years, says ANZ New Zealand economist Henry Russell .

In our bonus deep dive interview:

ANZ Australia Senior Economist Adelaide Timbrell explains why ANZ Research has increased its growth forecast for this year to 2.4% from 2.2%.

Cheers,

Bernard

PS: Catch you tomorrow morning with more from Adelaide on Australia’s economy on the eve of the RBA’s decision tomorrow afternoon.