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.

Rate cuts on the cards: RBA

Staff Reporter 4 minute read

The RBA today left the official cash rate unchanged at 7.25 per cent but cuts might not be far away.

Glenn Stevens, monetary policy governor, said it was looking increasingly likely that demand would remain subdued and economic growth slow.

“The evidence is that the tightening in financial markets, in conjunction with other factors including rising fuel costs and lower asset values, has restrained demand,” Mr Stevens said.

“With demand slowing, the [RBA] board’s view is that scope to move towards a less restrictive stance on monetary policy in the period ahead is increasing,” he said.

Advertisement
Advertisement

Jennifer Nielsen, chief executive officer of LoanMarket Group, said she expected pressure to mount on the RBA to ease rates as the year continued but pointed out that any move may be disregarded by the banks.

“Even if the RBA does lower rates from 7.25 per cent next month, or in October, the question everyone will be asking is will the banks follow suit,” she said.

“After setting a precedent of increasing rates without any movement in the official cash rate, there is plenty of speculation about how the banks will respond to a downward move by the central bank.”

Published: 05-08-08

Do you think the RBA should cut rates? Comment here

PROMOTED CONTENT


 

Rate cuts on the cards: RBA
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

default

 

more from the adviser
mortgage document sign ta 1 in 5 borrowers lies on loan applications

One-fifth of Australians have admitted to not telling the whole t...

money au ta Judo Bank valued at $1.9bn after equity raise

The SME challenger bank has announced its latest equity funding r...

gentlmen handshake Choice announces commercial white label service

The aggregator has partnered with a finance brokerage to add a co...