The Reserve Bank of Australia will almost certainly leave interest rates on hold at 1.5% at the meeting on Tuesday 2nd May and, in a change to our central forecast, we now no longer expect it to cut rates further this year. That said, interest rates are still more likely to fall this year than rise and we doubt that rates will increase next year at all. We still expect the Australian dollar to weaken from US$0.75 now, but we have raised our forecast for the end of 2017 from US$0.65 to US$0.70.
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