Interest rates will stay low for another year

Most economists are expecting the Reserve bank to cut official interest rates to a new record low of 2.5 per cent in August. 22 out of 28 economists polled by Bloomberg expect the RBA to reduce the cash rate by 25 basis points.

Macquarie and Westpac economists are predicting a 2 per cent cash rate within six months.

The median view of all the economists’ prediction is for rates to remain low throughout next year.

Source: Property Observer