RBA may cut next month after CBA home loan hikes

Pressure is mounting on the Reserve Bank of Australia (RBA) to cut interest rates again after Commonwealth Bank revealed that it would be raising rates on its home loans.

The move, announced last week, has been broadly condemned by the government and Kevin Rudd has warned that the bank is moving in the wrong direction.

Meanwhile, Access Economics spokesperson Chris Richardson told Sky News said that if the rest of Australia’s major home loan lenders follow Commonwealth’s lead, the RBA will be forced to cut interest rates.

Experts are now forecasting that an RBA rate cut may come as soon as next month.

The Bank will tomorrow publish details from this month’s meeting, where it decided to keep interest rates on hold at three per cent.

The Australian anticipates that it will use this announcement to remind banks that it still intends to cut interest rates further.

Prospects for economic recovery have been supported by the announcement earlier this month that the country managed to sidestep a recession in the first quarter of the year.

Get more information on the latest Reserve Bank interest rates with MozoADNFCR-1761-ID-19219508-ADNFCR