So, it will be an interesting Board Meeting for Australia's Reserve Bank tomorrow with plenty of weak data for the Board to mull over, but on balance the cash rate will probably be left on hold at 2.75%.
The ASX 30 Day Interbank Cash Rate Futures June 2013 contract last traded at 97.285 which (being a lot closer to 97.25 than 97.50) indicates only a small 16% expectation of an interest rate decrease to 2.50% tomorrow.
Or you can get $1.04 for rates on hold and $8.00 for a 25bps cut if the bookies are more your thing.
However, the yield curve remains inverted and the implies that the RBA will cut again by September/October to a new record low cash rate of 2.50%.
Plenty of data to flow in before then which may well make their mind up sooner - will have to wait and see...
Source: ASX
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