RBA likely to cut rates by another 25bps at its May meeting: Standard Chartered

Quotes from Standard Chartered:

-We expect the Reserve Bank of Australia (RBA) to keep the policy cash rate on hold at 2.25% on 3 March. This is a non-consensus call. Expectations are split for both the market and forecasters following the RBA's surprise February rate cut; money markets are now pricing in a 54% chance of a cut.

-The central bank was bearish in its quarterly monetary policy statement, lowering its 2015 forecasts for GDP and inflation while acknowledging further room to ease. However, the RBA is likely to await more data - particularly Q4-2014 GDP due on 4 March and Q1-2015 inflation data due in April - before making further moves.

-The last time the RBA cut rates at consecutive meetings was in May-June 2012, when it cut the cash rate to 3.5% from 4.25%. We expect the RBA to cut rates by another 25bps at its May meeting.