National Australia Bank pushes back RBA rate cut call

National Australia Bank (NAB) is the latest addition to the list of investment banks who recently pushed out their call for the next Reserve Bank of Australia (RBA) rate cut to April/May. 

The NAB now expects the RBA to cut rates by 25 basis points to 0.5% in April compared to the previous forecast for a rate cut in February.

The markets have already priced out the February rate cut expectations. Currently, the overnight index swaps (OIS) are pricing only 10% odds of a rate cut next week. The odds stood well over 50% ahead of the December jobs report released on Jan. 23.