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Goldman Sachs delays Reserve Bank of Australia's April interest rate cut forecast to May

Online reports that Goldman Sachs economists have postponed their forecast for Australia's next interest rate cut from next week to May due to domestic political uncertainty in the country and unclear global trade prospects. They expect the Reserve Bank of Australia to leave the cash rate unchanged at 4.1% next Tuesday. Last month, the Reserve Bank of Australia just cut interest rates for the first time in four years. Australia will hold a general election on May 3. Andrew Boak, chief economist at Goldman Sachs Australia, said: "As polls show that the two major parties are evenly matched, suspending interest rate cuts at next week's meeting will allow the Fed to have a clearer understanding of possible fiscal policies accompanying the election results. It will also provide some clarity on the global trade policy outlook (April 2) and the first quarter CPI report (April 30)." Despite this, given the uncertainty of the Fed's response mechanism and the recent weak performance of monthly inflation and employment data, Boak still believes that the outcome of the April interest rate decision is pending. (Jin Shi)

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