Reserve Bank of Australia to cut interest rate by 25 basis points at its May 20 meeting — Reuters

Analysts polled by Reuters expect the Reserve Bank of Australia (RBA) to lower interest rates by 25 basis points at its Tuesday meeting. The regulator is also anticipated to implement two more cuts to borrowing costs in the coming months, provided that inflation remains within its target range. Experts voiced this forecast prior to the central bank's next gathering.

The agency noted that ongoing global trade tensions could still contribute to consumer price growth in Australia. Nonetheless, for the time being, the United States and China have agreed to postpone the imposition of import tariffs on several products for 90 days.

A Reuters poll conducted from May 12 to 15 revealed that RBA officials nearly unanimously expect monetary policy to be eased at the upcoming meeting. The central bank's key interest rate is predicted to drop to 3.85%.

The prospect of re-evaluating particular trade duties in the future has been highlighted by experts, sparking discussions about its potential repercussions on consumer confidence and the business climate in Australia.