Australia central bank to hold rates at May meeting: Reuters poll

FILE PHOTO: A pedestrian walks past the Reserve Bank of Australia building in central Sydney

SYDNEY (Reuters) – Australia’s central bank is strongly expected to hold its cash rate at a record low of 1.5 percent at its monthly policy meeting next week, a Reuters poll of economists found.

All 65 economists polled by Reuters forecast the Reserve Bank of Australia (RBA) would stand pat on May 2, following two rate cuts last year.

While the majority predicted a steady rate outlook on a one-year horizon, 23 respondents out of 56 forecast an interest rate hike by mid-next year, versus four seeing an easing.

Economists were asked what the cash rate would be after the next RBA meeting on May 2 and where rates would be at the end of June 2018.

(Reporting by Cecile Lefort; Editing by Sam Holmes)