UBS has brought forward expectations for the Reserve Bank of Australia's first rate cut from May next year to February, and said the downside effect of a concerted rate cut by the Federal Reserve over the next year would also give the RBA room to relax. George Tharenou, chief economist at UBS, says interest rates in Australia will remain high for longer, at least relative to global trends, which are becoming increasingly dovish. UBS now expects lower end point rates in the US and a swift drop in the federal funds rate to well below the RBA's official cash rate. These factors mean the RBA could start easing monetary policy earlier, he says. (Gold Ten)