AUD,NZD

Chances of RBA rate cut increase to 85%

The latest Australian government economic and fiscal outlook, announced earlier today, included a series of cutbacks aimed at delivering a forecast surplus of A$1.1 billion. Such spending cuts will make it easier for the RBA to cut rates by 25bps in 2 weeks time. Coming on the back of comments from board member Jillian Broadbent that she would like to see a lower AUD, the market has increased the chances of such a cut to 85%.

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