Australia & New Zealand Economics

Australia & New Zealand Economics Weekly

18 April, 2019

Why two cuts may not be enough

As the economic outlook has softened the RBA is inching closer to a rate cut. The analyst consensus has now come around to our view and foresees two 25bp cuts by early next year. But we think that the reduced potency of monetary policy combined with the ongoing downturn in the housing market means that the RBA may have to lower rates by even more.

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