Futures market expecting Reserve Bank of Australia to cut interest rates in 2023 trends now
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The Reserve Bank of Australia is now expected to start cutting interest rates in mid-2023, after indicating it would pause a planned rate hike in April.
Minutes of an RBA Board meeting said on Tuesday that the central bank will 'reconsider the case for a pause' at a meeting next month.
The interbank futures market, which bets on interest rates movements, on Tuesday predicted a rate cut in July, that would take the cash rate back to 3.35 per cent.
A week ago, the Australian Securities Exchange's 30-day cash rate futures was expecting the RBA to leave rates on hold at an 11-year high of 3.6 per cent for the rest of 2023.
The collapse of the American Silicon Valley Bank, Signature Bank and Silvergate Bank, and the near death of Credit Suisse in Switzerland has dramatically reframed predictions about interest rates, even though inflation is at a 32-year high level of 7.8 per cent.
The Reserve Bank of Australia is now expected to start cutting interest rates in mid-2023, after indicating it was likely to pause a planned hike in April. The interbank futures market, which bets on interest rates movements, on Tuesday predicted a rate cut in July, that would take the cash rate back to 3.35 per cent.
The Reserve Bank's March meeting minutes, released on Tuesday,
