Speculation Mounts that RBA Will Ease Tuesday

Speculation is high that the Reserve Bank of Australia (RBA) will be the next central bank to ease monetary policy at its meeting this week following a month of surprise policy changes across the globe.

January saw unexpected loosening measures from a handful of central banks including Denmark, India and Singapore against a backdrop of increasing deflationary pressures as crude oil prices continue their descent.

The RBA has held rates at 2.5 percent since August 2013.  Many analysts expect the RBA to announce a 25 basis-point interest rate cut at Tuesday’s policy meeting to tackle 6 percent unemployment and sliding iron ore prices, one of the country’s biggest exports.

CNBC

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