ANZ have changed their RBA call and now.........>

RBA: ANZ have changed their RBA call and now expect two 25bp cuts to the cash

rate in July and August this year, which would bring the rate to 0.75%. The

previous call was for reaching the same level by November.

- ANZ's economist David Plank comments: "It is our expectation that the

combination of lower interest rates, a much flatter yield curve (driven in part

by the forward guidance the RBA is already effectively providing), a lower AUD

and tax cuts will provide the boost the economy needs to get back onto a growth

path that will push the unemployment rate lower."

- Yesterday's speech from RBA Gov Lowe was read as a clearly dovish signal, with

Lowe stating that it is "not unreasonable" to expect further easing. The

governor will speak again next week.

- Implied probability of a 25bp cut to the cash rate at the next RBA policy

meeting on July 2 is now ~82%, as per BBG WIRP tool.