RBA cuts again, more cuts to come
The Reserve Bank of Australia cut official interest rates to their lowest point in more than seven years yesterday. The RBA board cut another full one per cent off rates, taking the cash rate to 4.25 per cent as the central bank attempts to stimulate demand and avoid an economic recession. Employment, investment, consumption and commodity prices are all down leading economists to predict that Australia will enter a technical recession early in 2009. Financial markets have priced in a 0.75 per cent rate cut in February with an 82 per cent chance of a 0.25 per cent rate cut in January.
Source: The Australian Financial Review