Business conditions fell again in July and are now dropping at a level faster than that recorded during the post-2000 Olympic slowdown.
According to NAB’s Monthly Business Survey & Economic Outlook released yesterday, business conditions slid by an additional five basis points in July to negative five. This represented a fall of 25 basis points in just nine months.
Considering this, NAB said it expected the RBA to bring rate cuts forward to as early as next month, with at least 50 basis points to come off the cash rate before the year is out.
NAB also forecast a cash rate of six per cent by mid 2009.