UBS: Fed's significant rate cut will prompt the RBA to relax monetary policy earlier

Odaily Planet Daily News According to UBS, the expected first interest rate cut by the Reserve Bank of Australia has been brought forward from May next year to February, and it is also said that the downward pressure on the US Federal Reserve’s interest rate in the next year will provide the Reserve Bank of Australia with room for easing. UBS Chief Economist George Tharenou said that Australia’s interest rate will remain at a higher level for a longer period of time, at least relative to global trends. The global trend is becoming increasingly dovish. UBS currently expects that the terminal interest rate in the United States will be lower, and the federal fund interest rate will quickly fall to a level far below the official cash interest rate of the Reserve Bank of Australia. He said that these factors mean that the Reserve Bank of Australia may start easing monetary policy earlier.