One fifth of Australians believe RBA rate cut is likely

by Mackenzie McCarty01 Jul 2013

The ASX’s most recent data shows 79% of survey respondents expect the RBA to keep the official cash rate at 2.75% at its meeting tomorrow, while 21% expect a reduction to 2.5%.

As at June 28, the ASX 30 Day Interbank Cash Rate Futures July 2013 contract was trading at 97.300, indicating a 21% expectation of an interest rate decrease to 2.5% at the next RBA Board meeting.

The table below highlights how market expectations of an interest rate decrease at the next RBA Board meeting has evolved over the past five days.

Trading Day

No Change

Decrease to 2.5%

24 June

81%

19%

25 June

77%

23%

26 June

77%

23%

27 June

77%

23%

28 June

79%

21%

 

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