AMP Capital's Shane Oliver won't be surprised if RBA holds off another cut in May

AMP Capital's Shane Oliver won't be surprised if RBA holds off another cut in May
AMP Capital's Shane Oliver won't be surprised if RBA holds off another cut in May

AMP Capital's Shane Oliver expects the RBA to act on its easing bias and cut the cash rate to 2% (from 2.25%) at its May meeting today.

"But it’s another very close call," he suggests.

"The case for another cut remains strong: the outlook for business investment remains weak, commodity prices are softer than expected, the Australian dollar remains too high and is at risk of rebounding further and inflation is benign.

"However, the RBA may continue to fret about housing leverage and Sydney home price gains and the bounce in the iron ore price over the last few weeks has eased the pressure on the RBA a bit.

"So while our base case is for a cut, another month on hold would not be surprising."

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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