No rate cut in April say economists: Bloomberg survey

The Reserve Bank will leave the cash rate unchanged at 3% when it next meets to decide on monetary policy on April 2, according to the latest Bloomberg survey of economists.

Of the 25 economists polled by Bloomberg on March 8, 24 expect the cash rate to remain unchanged.

The only economist expecting the RBA to cut the cash rate in April is Dominic Bryant from French investment bank BNP Paribas Asia.

Last week, he, along with Macquarie Bank chief economist Richard Gibbs, were the only two economists out of 27 polled by Bloomberg who tipped the RBA to cut the cash rate in April.

Gibbs has since altered his view, leaving Bryant the lone economist tipping an April rate cut.

looking beyond April, a significant majority of economists – 16 out 25 – expect the cash rate to also remain unchanged in May.

A majority of economists (15 out of 25) expect the cash rate to be lowered in June with 13 expecting a cash rate of 2.75% and two – notably Macquarie Bank’s Richard Gibbs and NAB’s Alan Oster – tipping a cash rate of 2.5% with both economists expecting 25 basis point rate cuts in May and June.