0104 GMT - The RBA's rate cut last week and tilt toward dovish guidance is a signal that it intends to return monetary policy to a neutral setting in the short term, with the next step being a 25-basis-point cut expected at the next meeting in July, says Warren Hogan, chief economic adviser at Judo Bank. Still, the RBA may fast-track the process and cut by 35 basis points to get the OCR to the desired neutral rate of 3.50%. The bigger cut may be needed if the global situation remains problematic or domestic data comes in weaker than expected over the next month, Hogan adds.(james.glynn@wsj.com; @JamesGlynnWSJ)

(END) Dow Jones Newswires

May 25, 2025 21:04 ET (01:04 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.