Rates down to 2 per cent by June
Investors trading on the Sydney Futures Exchange yesterday estimated the chances of a 1.0 per cent rate cut next week by the Reserve Bank at 100 per cent. The market priced in rate cuts that would take the official cash rate to 2.5 per cent by April and possibly to just 2.0 per cent by the middle of the year as the central bank tries to avoid a recession in Australia. ANZ economist Katie Dean forecast the Australian economy would grow by just 0.1 per cent this year. The IMF predicted the slowest rate of world economic growth since World War Two.
Source: The Australian Financial Review