ChainCatcher news, UBS has brought forward the expectation of the first rate cut by the Reserve Bank of Australia from May next year to February, and said that the downward effect of the Fed's consistent rate cuts in the next year will also provide the Reserve Bank of Australia with room to relax.
UBS Chief Economist George Tharenou said that Australia's interest rates will remain at a higher level for a longer time, at least relative to the global trend. The global trend is becoming more and more dovish. UBS currently expects that the terminal interest rate in the United States will be lower and the federal funds rate will quickly fall to a level far below the official cash rate of the Reserve Bank of Australia. He said that these factors mean that the Reserve Bank of Australia may start to relax monetary policy earlier.