Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Economist dismisses talk of Tuesday rate cut

Amid whispers that the Reserve Bank will cut rates before the end of the year, BetaShares’ chief economist believes a rate cut as early as tomorrow is unlikely.

David Bassanese said that while the lower-than-expected September quarter consumer price index (CPI) result gives the RBA added flexibility to cut interest rates should the economy require it, it does not compel a rate cut for this month.

This reflects several factors, according to Mr Bassanese, including that the nearer-term economic outlook “remains encouraging”, with business confidence buoyed by the new Turnbull government and job advertisements still holding up.

“There still remains dark clouds on the horizon, with a looming drought, higher bank capital costs forcing up mortgage rates, a potential near-term peak in housing construction and still bleak business investment outlook,” he added.

“The RBA may well want to reserve some ammunition to deal with these challenges as we head into 2016.”

Advertisement
Advertisement
Economist dismisses talk of Tuesday rate cut
mortgagebusiness

Latest News

Discover some of the top news stories impacting the mortgages space in this weekly wrap-up. ...

The central bank should have raised the official cash rate earlier than May given rising inflation, according to economist Stephen Koukoul...

In the face of ever-increasing competition from fintechs in the buy now, pay later space, NAB has nabbed its share by launching its first BN...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.