Market Chatter: Growing Uncertainty from US tariffs to Lead to More Dovish Reserve Bank, Citi says

MT Newswires Live04-03

The growing uncertainty caused by the 10% "reciprocal tariffs" imposed by the US on Australia may push the Reserve Bank of Australia (RBA) towards a more dovish stance in the near term, according to a Thursday report by the Australian Financial Review, citing Citi.

Citi expects the RBA will cut the cash rate next month and again in August, reducing the benchmark rate to 3.6 percent, per the report.

However, Citi is keeping the country's growth forecast unchanged, noting that the 10% tariffs are unlikely to derail the economy's recovery this year, the report added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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