RBA raises expectations of June rate cut

Reserve Bank governor Glenn Stevens has raised expectations of another rate cut next week by commenting on China’s slowing economy.

Mr Stevens said there was “no doubt” the weakness in China was a consequence of deliberate policies aimed at addressing the dramatic inflation in property prices. Many economists are now tipping a 0.25 per cent rate cut in the first week of June.

“There's no doubt the data in China in the past month or six weeks have been on the softer side and that's probably a flow-on of weaker demand out of Europe,” he said.

Source: Herald Sun