RBA: Further 75bps of cuts likely over 2019/20 - TDS

Analysts at TD Securities are expecting a further 75bps of cuts from RBA over 2019/20 which is likely to take the cash rate to 0.50%.

Key Quotes

“We have penciled in cuts for July'19, Nov'19 and May'20.”

“Making inroads into cutting spare capacity is the major driver for RBA cuts.”

“We think the AUD has bottomed and a broadly weaker USD profile reinforces a push back above 0.70 in H2.”

“Risk: The RBA cuts more aggressively than our 2019 forecast.”