FOMC confident, RBA to cut with RBNZ stuck in neutral - 'AFTER 18 months of keeping its official interest rate unchanged, the Reserve Bank will almost certainly cut the rate at its first meeting back for the year next Tuesday'. That's the view of noted RBA-watcher Terry McCrann who, in an opinion piece released overnight, stated that downgrades to GDP and CPI forecasts in the upcoming statement on monetary policy will lead the RBA to reduce the cash rate by 25bps to 2.25% in February. (VIEW LINK)