RBA cuts its inflation forecast - BBH

Research Team at BBH, notes that the RBA released its statement on monetary policy overnight and the central bank cuts its inflation forecast for this year to 1-2%, down from 2-3% in its last statement.

Key Quotes

“The new forecast is below the RBA’s target, raising expectations of further rate cuts. The next policy meeting is June 7. Of course, AUD promptly weakened over 1% and traded below .7400 for the first time since early March. It has now retraced nearly half of this year’s rally, with retracement objectives coming in near .7330 (50%) and then .7210 (62%).”