RBA: Market now prices a 65% chance of a cut on 3 August - BNZ

Kymberly Martin, Senior Market Strategist at BNZ, suggests that their NAB colleagues saw yesterday’s RBA Minutes as considerably more dovish than those of a month ago.

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“The Bank seems to have built a case to ease further, including discussion that underemployment has not declined as significantly as the unemployment rate. Next Wednesday’s Q2 CPI remains very important. Our NAB colleagues will revisit their monetary policy forecasts at that time. The market now prices a 65% chance of an RBA cut on 3 August and around a 1.32% trough in the cash rate within the year ahead."