Economists predict the Reserve Bank of Australia will cut interest rates despite improved US-China trade ties.

A majority of economists expect the Reserve Bank of Australia to cut interest rates at its next meeting, despite recent positive developments in US-China trade relations. US President Donald Trump reduced tariffs on China from 145% to 35%, prompting China to lower its tariffs and boosting riskier assets like shares. Still, the RBA may cut rates due to economic uncertainties and the need to support inflation. Almost nine in ten economists surveyed predict a rate cut, with the central bank also set to update its quarterly economic forecasts. Australian shares hit a three-month high recently.