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Goldman Sachs postpone RBA rate cuts forecast to May
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2025-03-28 11:02 9,771
Goldman Sachs economists have postponed their expectations for Australia's next rate cut from next week to May due to political uncertainty in the country and the uncertainty of global trade prospects, Golden Finance reported. They expect the RBA to keep the cash rate unchanged at 4.1% next Tuesday. Last month, the RBA just cut interest rates for the first time in four years. Australia will hold a general election on May 3. "As polls show that the two major parties have equal approval ratings, a pause of interest rate cuts at next week's meeting will give the Fed a clearer understanding of the fiscal policy that may be introduced with the election results. This will also provide some clarity for the global trade policy outlook (April 2) and the first quarter CPI report (April 30). Still, given the uncertainty of the Fed's reaction mechanism and the weak performance of recent monthly inflation and employment data, Boak still believes the results of the April interest rate resolution are pending. (Jin Shi)
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