Flash: RBA, risk for a pause after August cut - Nomura

FXstreet.com (Barcelona) - The Australian market has been hammered as the market now prices in a 90+% probability of an August rate cut, which is in line with Nomura's view that the RBA will deliver a 25bp cut to 2.5%.

However, according to Martin Whetton, Strategist at Nomura: ", with six meetings held so far this year and only one policy move (the May cut), we believe the RBA will continue to act conservatively. While further cuts will be needed, in our opinion, the risk to the markets is a pause after the August meeting, which could see a selloff for rates markets."