Advertisement
Powered by MOMENTUM MEDIA
lawyers weekly logo
Lender

Leading index points to rate cut in April

3 minute read
The Adviser

Ongoing deterioration in economic conditions will see another 25 basis points come off the cash rate in April according to Westpac.

Released yesterday, the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, fell 0.2 per cent in January to -3.1 per cent.

Although this is the weakest reading the Index has registered since August 1990 when the economy had already entered a deep, long-lasting recession, Westpac said aggressive policy measures from the government and RBA would prevent the economy from a repeat of the 1990s experience.

The RBA will reduce the cash rate by another 25 basis points to 3 per cent when it meets next month, Westpac forecast, with the cash rate moving to 2 per cent within the second half of the year.

 COMMENT HERE

 

default

JOIN THE DISCUSSION

You need to be a member to post comments. Become a member for free today!
You have 0 free articles left this month.
Register for a free account to access unlimited free content, or become a PREMIUM MEMBER to enjoy a wide range of benefits