Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

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

Cash rate tipped to fall by 1pc tomorrow

Staff Reporter 2 minute read

The cash rate is expected to fall to 3.25 per cent tomorrow and could fall below 2 per cent by the end of 2009, according to industry forecasts.

Westpac has tipped a 1 per cent cut tomorrow – a level supported by the futures markets. Loan Market Group executive director John Kolenda has also predicted that the RBA was likely to lower the cash rate by 1 per cent tomorrow with further cuts to follow.

“We expect the cash rate will now go under 2 per cent this year, but the question that remains is how the RBA manages the timing of these rate cuts,” he said.

Mr Kolenda said more rate cuts were needed to bring life to the ailing property market.

“Having a healthy property market is always indicative of a strong economy and taking the cash rate down from the current level of 4.25 per cent will be a key step in renewing investor confidence and bringing buyers back to the market.

Advertisement
Advertisement

Mr Kolenda has also called on the Federal Government to extend the boost to the First Home Buyers Grant for another six months beyond its June 30 expiry date.

“There is concern that first home buyers will simply run out of time to find homes in time and get loans,” he said.

COMMENT HERE
Cash rate tipped to fall by 1pc tomorrow
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
RBA 2 TA RBA maintains status quo amid calls to consider cuts

The central bank has held the cash rate at its effective lower bo...

CBA 2 CBA announces interest-only lifeline

The bank has become the second major lender to offer customers t...

digital Brokers cite refinancing as key profit driver

The vast majority of brokers believe that refinancing clients is ...

FROM THE WEB