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Board members decided to lower the cash rate to a record low 1.50 per cent following a 25 basis point cut last month.
The last time the central bank made two consecutive rate cuts was in May and June in 2012.
The RBA’s decision has come as a surprise. All 31 economists and commentators surveyed by comparison website finder.com.au had predicted no change to the cash rate.
MyState Limited senior business analyst, Chris Schade, said there was no urgent need to deliver another cut, “with the Australian dollar weaker, the economy going okay and May’s cut requiring some time to work through the economy”.
BIS Shrapnel’s Richard Robinson said it would be better to leave some rate cuts for future months “when they might need them”.
“The last cut successfully engineered a fall in the Australian dollar, which the RBA desired,” Mr Robinson said.
“Although inflation is low, deflation is unlikely (oil prices have already risen sharply since January) and the economic growth is sufficient to prevent a marked increase in the unemployment rate.”