Westpac’s Bill Evans sticks to his May rate cut call:
We have now passed the last three significant milestones for insights into the Reserve Bank Board decision on May 5. These are the Board minutes for the April meeting; the Governor’s important speech in New York; and the March quarter inflation report. From our perspective the case for a cut in May remains strong and we continue to expect the Bank to finally deliver on the second leg of the 50bp’s of cuts in “early 2015” we forecast back on December 4 last year.
18 out of 20 economist are now predicting a cut in May and the two dissenters – NAB and MQG – still see easing, just later.
