National Australia Bank - "We have changed are rate cut call to two 25 bps cuts for a cumulative 50bps, from our previous forecast of a cumulative 75bps cut. We still see a case for significantly easier monetary policy ahead but acknowledge there have been early signs that lower interest rates are already getting some traction in housing and equity markets, plus the RBA’s expressed ‘comfort’ with current activity, and finally that wholesale funding costs have fallen recently. Given these developments, while we still see significant easing ahead, with two more rate cuts in June and November of 25bps each.
Australian GDP forecasts revised up to 2.3% for 2013 from 2.0%, due to revised history for the GDP series. We expect 3.1% next year, assuming the two rate cuts ((3.3% earlier).
Global growth outlook unchanged at 3.3% this year and 3.9% in 2014 (20yr average 3.5%)."