Must Read

auction ta
March 25 2020 Auctions and open house inspections banned
Prime Minister Scott Morrison has issued a crackdown on public auctions and open house inspections. ...
Mario Pepper
March 24 2020 Pepper confirms trail stance for COVID-19 loans
Pepper Money has become the first lender to publicly announce its position on trail commission payme...
balance coins ta
March 23 2020 Lenders to announce COVID-19 trail policy
The banks have said they are “conscious that brokers are small businesses [and will] require suppo...
Anthony Healy 3
March 23 2020 Senior NAB exec to step down
The major bank has announced the departure of another senior executive, just weeks after confirming ...
NAB CBA Westpac ANZ new ta
March 20 2020 Big banks offer mortgage repayment relief
The major banks have outlined how they are supporting those affected by the coronavirus pandemic...
March 19 2020 RBA, government to provide lenders with billions for SMEs
The central bank and federal government are establishing new multibillion-dollar initiatives to enab...
Rankings and reports

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Latest Podcast

James Schulze

Another big four bank predicts rate cut

Nick Bendel 1 minute read

NAB has become the second major bank in a week to forecast that the official cash rate will fall in 2015.

NAB announced yesterday that it expected the Reserve Bank of Australia to reduce the cash rate to 2 per cent by making 0.25 per cent cuts in March and then August.

It comes after Westpac forecast that the Reserve Bank would reduce the cash rate both in February and March, which would mean a rate no higher than 2 per cent.

The cash rate is currently at a record-low 2.5 per cent, where it has remained for 16 months.

NAB's forecast was driven by gloomy economic conditions.


That included GDP growth of 0.3 per cent in the third quarter of 2014, which it said was below expectations, and the "sharp decline in bulk commodity prices" that was recorded in October.

NAB said that household retail demand growth continues to trend up but that consumers are reluctant to spend, while demand for personal credit has weakened.

"Housing credit growth continues to gather pace from low levels and there are signs of a rise in household debt, although the household saving rate remains elevated," according to NAB.

"There is a risk that the expected decline in mining investment may occur later but be larger than so far expected. Strengthening business credit growth offers some prospect that the non-mining investment climate is improving."

[Related: Rates to stay low for 10 years, says lender]

Another big four bank predicts rate cut
TheAdviser logo

Latest Opinion

Anja Pannek new
Together we will get through this and emerge stronger
The Australian mortgage broking industry has shown its resilience in times of uncertainty. It’s now time for us to come together once again and to b...
Dr Yvette Blount
Working from home: A manager’s perspective
With more Australians expected to work from home, what should managers do to support the business and staff morale? Macquarie Business School associat...
Andrew way
Harness the ‘elephant in the room’
Semper's director, Andrew Way, outlines 10 tips to bolster business through SME funding. ...
latest issue
The Adviser magazine latest issue
The Adviser magazine latest issue
Myths and legends

In 2018, The Adviser undertook its biggest survey in its history, the Consumer Access to Mortgages Report, surveying borrowers about their mortgage experiences through the direct and third-party channels. Last year, The Adviser once again commissioned Momentum Intelligence to provide the ammunition the industry needs to slay the common misconceptions, misinformation and myths surrounding the mortgage process. Annie Kane reveals all.

The Adviser magazine latest issue
Succession planning in focus

For many, retirement or succession planning may seem like a far-off activity, but planning for your exit from industry early is the key to success, as Annie Kane finds out.

The Adviser magazine latest issue
Sector report: Primed for near prime

With credit policies constantly being tweaked and banks changing their risk profiles of prime customers, the near-prime segment has been growing in recent years – resulting in increased interest from both the broker and consumer market. In this sector report, we take a look at the near-prime segment and who it is servicing.

The number one magazine for mortgage brokers
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target market reports to an audience of professional mortgage and finance brokers
order now