Markets expect RBA to cut rates five times by September — Bloomberg

Bloomberg reports that markets forecast the Reserve bank of Australia (RBA) to cut rates at least five times by September, while fully pricing a 0.5% reduction at the meeting in May. Earlier in April, the bank held rates steady at 4.1% after easing monetary policy for the first time in four years in February. 

Meanwhile, the Council of Financial Regulators, chaired by RBA Governor Michele Bullock, said uncertainty associated with US import tariffs is likely to persist for some time. The council also noted increasing volatility in global financial markets and highlighted the resilience of the Australian financial system.

Australia became one of the countries whose goods are subject to a relatively low import levy of 10%. However, the nation is particularly reliant on global trade for its prosperity, Bloomberg says. 

The Australian Treasury projects the country’s real GDP will decline 0.2% and inflation will rise 0.2% in the short term driven by Donald Trump's import duties.