RBA could cut 0.5% tomorrow

The cash rate in Australia will fall 50 basis points to 2.75 per cent on Tuesday if Alan Mitchell, economics editor of the Financial Review, is on the money. Economists are divided over whether the Reserve Bank of Australia will or should cut interest rates again tomorrow.

The Sydney Morning Herald reports that ten of the 19 economists surveyed by AAP expect the RBA to lower interest rates at its Tuesday meeting, with seven favouring a move of 50 basis points and three leaning toward a smaller 25 basis point cut. But the remaining nine believe the official cash rate will be kept at its 45-year low of 3.25 per cent.

Source: The Sheet