Market Analysis: The Reserve Bank of Australia is expected to cut interest rates, the new forecast will be closely watched.

The market widely expects that the Reserve Bank of Australia will announce the third interest rate cut in this easing cycle today, lowering the benchmark interest rate by 25 basis points to 3.60%. Given that the current year-on-year core inflation rate is 2.7%, it seems that the rate cut has become a certainty. The market will closely watch the guidance provided by the Reserve Bank of Australia and the new forecasts released at the same time. It is expected that the Reserve Bank of Australia will maintain an optimistic attitude towards the employment market, but remain cautious about the recent rise in the unemployment rate. The 3.60% benchmark interest rate level will still leave the Reserve Bank of Australia with some ammunition to respond to shocks.