Rates to fall to five per cent next year

Interest rates will be cut by the Reserve Bank by half a per cent in September despite stronger than expected jobs data released yesterday, says Westpac. Most economists are predicting interest rates in Australia will be five per cent by the end of next year. Financial markets have priced in two cuts of 0.25 per cent by October, which would leave the cash rate at 6.75 per cent. Expectations of lower Australian interest rates have pushed the dollar lower against the American dollar. Yesterday the currency dropped below 91 US cents.

Source: Herald Sun