Rate cuts predicted for May

Bank of Queensland chief executive Stuart Grimshaw has forecast the Reserve Bank of Australia will cut official interest rates once more this year.

Grimshaw said demand for money was "not there" to support an "increased rate environment". “I think there's maybe one left, probably in that June area …People just don't seem to want to increase their borrowing; in fact they're paying it down.”

Goldman Sachs expects two more 25-basis-point rate cuts this year starting as soon as next month.

Source: The Australian