Goldman Sachs with their outlook for the Reserve Bank of Australia

(Note, this was before today's employment report)

"We believe that the RBA will reduce interest rates to 1.5% with the domestic banks likely to retain 10-15bps of of the reduction in order to protect their deposit base"

GS cite:

  • Other central banks easing, leaves the AUD vulnerable to further rises (which would tighten Australian financial conditions)
  • Low inflation
  • A slowing of employment growth in coming months

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View from Australian Goldman Sachs economists lead by Tim Toohey