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Citi: As the trade storm escalates, it is evaluating expectations for an interest rate cut by the Reserve Bank of Australia.
Jin10 data reported on April 8th that Citigroup's Chief Economist Josh Williamson stated that unless the Trump administration makes significant changes to the tariff rates and geographical scope, global GDP growth will decline in the second half of this year and may persist until the midterm elections in the U.S. at the end of 2026. He mentioned that while the direct impact of a small number of products exported from Australia to the U.S. being subjected to a 10% tariff should not affect Australia's GDP growth, the indirect effects generated through Australia's main trading partners could be significant. The risks clearly lean towards more rate cuts from the Reserve Bank of Australia than Citigroup currently anticipates in May and August. Williamson added that he is currently reassessing his interest rate expectations.