Citi expect the Reserve Bank of Australia on hold in February, first hike in May

Last week I posted on some shifting forecasts for the RBA:

ANZ expects a 25bp interest rate cut at the Reserve Bank of Australia February meeting

• due to weaker inflation figures in Q4

Citi are unmoved:

• expect the first RBA rate cut at the May meeting
• expect 75bp of cuts this year
• RBA on hold for longer relative to other central banks should mean outperfomance for the AUD
• target AUD/NZD to 1.13/1.14