UBS expects RBA to cut interest rates in February next year

According to Jinshi.com, UBS has brought forward its forecast for the first rate cut by the Reserve Bank of Australia from May next year to February. UBS chief economist George Tharenou said that the effect of the Fed's rate cuts over the next year will provide the Reserve Bank of Australia with room to relax.

Tharenou noted that interest rates in Australia would remain higher for longer, particularly relative to global trends, which are becoming increasingly dovish.

UBS expects the terminal interest rate in the United States to be lower, and the federal funds rate to quickly fall to a level far below the RBA's official cash rate. These factors mean that the RBA may start to ease monetary policy earlier.