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Australia central bank seen standing pat, but greater chance of cut - Reuters poll

Published 02/05/2016, 08:01
Updated 02/05/2016, 08:10
© Reuters. An office worker walks past the Reserve Bank of Australia (RBA) building in central Sydney, Australia

SYDNEY (Reuters) - The Reserve Bank of Australia (RBA) is expected to keep its cash rate unchanged at a record low of 2.0 percent at a policy review on May 3, though a growing number of economists expect a cut, an updated Reuters poll released on Monday showed.

Thirty-three out of 51 economists polled expect the RBA to keep its policy rate on hold this week, while 18 see a 25 basis point (bps) reduction following surprisingly low inflation figures for the first quarter.

Last week's poll had 11 economists out of 50 forecasting a move.

The majority of respondents predict a cut by September, compared to an expectation of December last week. The RBA last cut rates in May 2015.

© Reuters. An office worker walks past the Reserve Bank of Australia (RBA) building in central Sydney, Australia

Economists were asked what the cash rate would be after the nextRBA meeting on May 3 and where rates would be at the end of the following five quarters.

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