Quotes from Capital Economics:
- It's a close call, but we believe that the weak tone of the recent economic news will just about be enough to prompt the Reserve Bank of Australia (03.30 GMT) to reduce the cash rate for a second month in a row, by 0.25% to 2.00%.
- The data released since the last meeting have shown that the labour market, wage growth and the outlook for business investment have all been weaker than expected.
- As such, we believe that there is a compelling case for back-to-back rate cuts. If the RBA does stand pat, it will only be for a month or two.
