The ECB, Fed and mostly the BOJ, all did nothing during the recent round of central bank announcements, but hopes are high that the RBA will not disappoint tonight. The Australian central bank is expected by both the market and economists to cut the Daily Cash Rate by 25bps from 1.75% to 1.50% when it announces its decision at 2.30pm AEST.
The OIS market assigns 66.7% probability for a 25bp rate cut to 1.5% by RBA tonight; up from 62.5% last week, and up from 16.8% at the beginning of July. Meanwhile economists see 25 bp cut tonight (20 of 25 forecasts), five see no change.