ANZ No Longer Forecasting RBA Feb Cut

By Sophia Rodrigues

Published On 23 Jan 2020 , 01:37 PM

Economists at ANZ have removed RBA cut in February from their forecast following the strength in employment in November and December that pushed the unemployment rate to 5.1%. They still think the RBA will cut the cash rate again but are currently reviewing the timing. The jobs report makes it difficult to see the RBA easing in February, notwithstanding the short-term hit from the bushfires and the likely downward pressure on near-term growth expectations from the weakness in consumer spending evident in the Q3 GDP data, the economists wrote in a note.  But continued weakness in consumer spending and soft business investment suggest that progress toward lower unemployment will stall at a level that is inconsistent with the RBA achieving its policy objectives, they added.

 

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