One more rate cut predicted for 2016

HSBC Australia chief economist Paul Bloxham is predicting another Reserve Bank rate cut in August 2016. Mr Bloxham said the RBA’s minutes from the May board meeting showed the RBA board spent a “considerable amount of time” on the outlook for inflation.

Mr Bloxham suggested that the RBA will wait until after the next CPI announcement, which is due on 27 July, then cut rates by 0.25 percentage points to 1.5 per cent.

Source: Mortgage Business

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