Nataxis tips RBA pre-emptive cut in Australian interest rates at next meeting

HONG KONG – Global asset manager Nataxis is tipping that the Reserve Bank of Australia will cut interest rates by 0.25% to 1.7% at its meeting on Tuesday (September 1). In a research report, it says China’s  fast slowdown and a round of depreciations across Asian currencies constitute a new additional factor for consideration.

Nataxis says a rate cut would help Australia undergo a gradual transition from the mining to the service sector “which has become even more of a priority given recent developments in China”.

“Overall, we tempt to think the RBA may take pre-emptive action (but) a good dose of market volatility in the run-up to the meeting may refrain the RBA from moving.” www.nataxis.com (ATI).