RBC’s Su-Lin Ong says the direct impact of Trump’s 10% tariff on Australia is likely limited, but broader trade and investment uncertainty could prompt a more dovish stance from the RBA.
While the central bank's cautious tone this week points to a gradual easing cycle, Ong notes that escalating global risks may increase the chances of deeper or earlier cuts, challenging RBC’s current base case for two more rate reductions in May and August.
