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No further rate cuts: NAB

by Staff Reporter7 minute read

NAB has claimed it does not expect the Reserve Bank of Australia (RBA) to cut the cash rate again.

The rate, which currently stands at 3.0 per cent, is already at a 49 year low after the RBA slashed 425 basis points since September last year.

Westpac is echoing NAB’s views, who also said the bank did not expect any further cuts.

ANZ still has a 2.5 per cent cash rate pencilled in its official forecasts, while CBA has forecast a 25 basis points reduction to 2.75 per cent in September.

CBA chief economist Michael Blythe told AAP the RBA would be a “reluctant rate cutter from here”.

"If you are purely looking at the economy then you wouldn't be doing any more," Mr Blythe said.

"But against that improving (economic) backdrop we have also had this tightening of financial conditions in the last three months... and the risk is it goes further."

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