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Plunging business conditions to usher 2009 rate cuts

by Staff Reporter7 minute read
The Adviser

Business confidence has fallen to its lowest level since the end of the 1990 recession, NAB’s Quarterly Business Survey and Forecasts report revealed yesterday.

Business conditions have also deteriorated sharply – domestic demand growth has slowed to an annualised two per cent in June 2008, the lowest level since the 9/11 terrorist attacks of 2001.

These results, combined with forecasts for tougher conditions in 2009, have led NAB to forecast a hold on rates in 2008 and predict significant cuts thereafter.

“NAB still expects RBA cuts to begin from early 2009 with a cash rate of around six per cent by late 2009/early 2010,” the report read.

Published: 30-07-08

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