Invest
Three-quarters of economists predict next cash rate cut
Ahead of the Reserve Bank’s monthly meeting tomorrow, a survey has revealed that 75 per cent of the nation’s top economists predict a looming rate cut.
Three-quarters of economists predict next cash rate cut
Ahead of the Reserve Bank’s monthly meeting tomorrow, a survey has revealed that 75 per cent of the nation’s top economists predict a looming rate cut.
Fifteen of the 17 economists surveyed by comparison site finder.com.au expect at least one rate cut for 2019.
All economists surveyed believe that the cash rate will remain on hold tomorrow.
“With the housing market continuing to tumble, and other global and international economic factors looking grim, experts seem to be sure we’re looking at at least one cut in 2019, if not two,” said Graham Cooke, insights manager at Finder.
A rate cut ease is overdue, according to chief economist at My Housing Market Dr Andrew Wilson.
“Although recent wage data was reasonable — not good, not bad — the RBA has conditioned the market to now expect a long-needed cut,” he said.
“This cut will attempt to revive consumption, which is now likely to also be impacted by continuing weaker housing markets.”
Last month, BetaShares chief economist David Bassanese said that Australia faces a “delicate balancing act” in navigating itself out of the housing and credit adjustment.
Mr Bassanese believes that the RBA will cut rates by the end of the year, with a likely move to a 1 per cent cash rate by February 2020.
“My view is that we need to see a decent lift in the unemployment rate to at least 5.75 per cent to justify the longer-run risk to financial stability from reducing interest rates even further below their long-run neutral rate,” he said.
RELATED ARTICLES
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
