Flash: RBA will cut further, timing data dependent - Nomura

FXstreet.com (Barcelona) - The RBA will cut rates further this year, says Martin Whetton, Economist at Nomura, with the timing of this cut depending on incoming data, Whetton added.

"Even though the RBA has indicated that the policy rate is appropriate for now, it does not mean that the RBA will remain on hold" Whetton says. With the upcoming elections in Australia - scheduled for 14 September -, Whetton thinks that "the hurdle for the RBA to cut rates at the August and September meeting may be very high as the central bank would prefer not to interfere with the election." As a result, the RBA remains on the dovish side by having retained its all familiar "some scope for further easing."