Economists' views diverge following larger-than-expected RBA cut

The 50 basis point cash rate cut announced by the Reserve Bank of Australia (RBA) on May 1 largely took most local strategists by surprise and left expectations of the future direction of RBA decisions divergent. While some believe the cut signals a more dovish RBA tendency others believe the central bank may already have completed its likely downward path; still more say the future direction is now too difficult to call.