Barclays are now looking for an RBA rate cut in April

  • Cite drop in commodity prices ... say RBA still concerned about house prices, so it's a close call
  • They were previously forecasting a cut in May
  • Add that after April they see a risk of further cuts from the RBA - around Q3
  • Say the neutral rate could be 2.75-3.75% now, down from 5-6% prior to GFC ... cite wider bank spreads, slower potential growth, lower world neutral rate