Rate cuts due in October and November
Conditions are ripe for an interest rate cut as early as next month, according to the minutes from this month's Reserve Bank meeting.
The forecast Melbourne Cup day rate cut may be brought forward to October with the RBA minutes showing that a weakening global outlook and a high Australian dollar may force the central bank to act sooner.
Westpac chief economist Bill Evans expects the RBA will lower rates by 50 points (0.5 per cent) to 3 per cent by the end of the year.
“There is a reasonable chance that the RBA will decide to move in October. However, central banks are conservative so the November call for the first move looks to be more prudent,” he said.
Source: Herald Sun