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RBA expected to cut interest rates by end of the year

A chief economist says the Reserve Bank of Australia will cut interest rates in the second half of the year, as house prices continue to fall.

The RBA has left the cash rate unchanged for another month, with the last cut announced in 2016.

AMP Capital’s chief economist Shane Oliver tells John Stanley he predicts there will be an interest rate cut in August and another one in November.

“There’s an old saying that, when you see one interest rate move there’s usually another one,” he says.

Mr Oliver says it is possible the banks may not carry out any cuts but believes, ”the pressure on the banks to cut their mortgage rates will be intense.”

“If they don’t cut they’ll get another round of bad publicity.”

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