More economists think rate cut is inevitable
More economists have joined the clarion call of financial experts that are predicting an imminent rate cut at the Reserve Bank of Australia.
Just last week the Australian Press Association surveyed 14 leading economic experts and found that 13 of them are expecting rates to fall.
A similar survey conducted by Bloomberg has reinforced the sentiment, showing that 24 of the 27 economists it quizzed about Australian interest rates are expecting a reduction.
The RBA is expected to slash the rate from 4.25 per cent to four per cent – not least because of the poorly performing jobs market.
It would be the third consecutive month that the RBA will have slashed rates if it proceeds with its current, drastic, economic policy.
Commenting on the RBA's likely course of action, Paul Bloxham, chief economist for HSBC Holdings in Sydney, told the San Francisco Chronicle: "We expect the RBA to cut rates, largely in response to easing labour market conditions, tighter financial conditions, and the global slowdown."
Get more information on the latest Reserve Bank interest rates with Mozo.