The RBA will cut its key rate by half by the beginning of next year

The firm says the RBA will reduce its key rate to 0.75%, GDP slowing

According to a note from Marcel Thieliant, senior economist at the firm, it will not take much for the RBA to start cutting rates based on the minutes of the April meeting released earlier today. . Adding that policy makers seem to worry more and more of the impact of the housing downturn on the economy and that the central bank has less confidence in his views on the labor market will continue to strengthen while the unemployment rate dropped in February.

There has certainly been more and more demand for the RBA to reduce rates and the previous minutes clearly indicate this direction. However, I believe that the RBA can only consider such a scenario if the labor market data begin to deteriorate in the coming months. And we'll have the first glimpse on Thursday, so here's your main risk event for the week if you trade the Australian dollar.