RBA still expected to cut rates in the near term – Danske Bank

FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, believes the RBA could lower its benchmark rate in the next meeting in March.

Key Quotes

“Australian core inflation rose more than expected in Q4 with an increase of 0.7% from the previous quarter”.

“The higher-than-expected core inflation data have reduced expectations that the Reserve Bank of Australia (RBA) will cut interest rates at its monetary policy meeting next week, while AUD/USD has increased more than 1% to around the 0.80 level”.

“We still expect the RBA to cut the cash rate target in March and target AUD/USD at 0.78 in 12 months’ time”.