Login
ISCOVER
Jessica Darnbrough
A majority of Australians expect the Reserve Bank to slash rates before year’s end, new research has revealed.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
According to a poll by Loan Market Group, 56 per cent of respondents said the current cash rate of 4.75 per cent would be lowered.
Loan Market chief operating officer Dean Rushton said 34 per cent of the 654 respondents thought there would be one rate cut, while 22 per cent believed the RBA would lower rates twice.
He said 28 per cent of the people who took part in the online survey believed rates would be left on hold and only 16 per cent tipped the RBA to take rates up.
“Australians are a lot more relaxed and comfortable about where interest rates are heading than they were a few months ago,” Mr Rushton said.
“The RBA until as recently as last month had considered lifting the cash rate to counter any rise in inflation but a number of factors such as the uncertainty in the global economy and sluggish domestic consumer sentiment has seen that change.
“The debt crisis in Europe and the soft retail sector in Australia could see the RBA reduce rates as early as its next board meeting on Tuesday.”
But while the majority of Australians believe a rate cut is now imminent, Australian Property Monitors chief economist Andrew Wilson said they couldn’t be further from the mark.
“I’m not sure they will cut rates. I think the RBA will remain bullish on rates and keep them steady with an upwards bias,” Mr Wilson told The Adviser.
“This reflects the stability of the Australian economy. We are very strong at the moment, especially in comparison to the rest of the world and the RBA’s stance on rates will mirror this.”
