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.
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