Skip to main content

RBA has more work to do

The RBA’s interest rate cuts are running into diminishing returns as banks are protecting their net interest margins and loan demand remains muted. Meanwhile, the sluggish increase in retail sales in August suggests that households are saving rather than spending the income tax refunds that are now arriving in their bank accounts. We reiterate our forecast that the RBA will cut interest rates to 0.5% in December but the risks are growing that more stimulus will be needed.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access