One per cent rate cut expected
Economists are expecting the Reserve Bank of Australia to cut interest rates next Tuesday by a full one per cent despite fears inflation may not yet be under control. Commonwealth Bank, Citi, RBC Capital Markets and JP Morgan are all predicting a one per cent rate cut when the RBA meets next week. HSBC economist John Edwards said a 0.75 per cent rate was more likely, giving the central bank room to cut further at a later date.
Source: Herald Sun