Bond traders expect the Reserve Bank of Australia to deliver three back-to-back interest rate cuts this year amid an escalating trade war that has sent the dollar plunging to its lowest level since the early days of the COVID-19 pandemic.
Money markets are now fully priced for a quarter-point easing at each of the RBA’s next three policy meetings starting in May, with more to follow next year, and ascribe a 40 per cent chance that next month’s move could even be a jumbo 50 basis point cut.
Source: https://www.afr.com/markets/debt-markets/traders-expect-up-to-five-rba-rate-cuts-amid-market-turmoil-this-year-20250407-p5lpo0