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RBA expected to cut interest rates next week

Article image for RBA expected to cut interest rates next week

Economists are expecting the Reserve Bank of Australia to cut interest rates next week.

Some economists are predicting the cash rate will be cut to 0.5 per cent by the middle of next year.

The Fair Work Commission will tomorrow hand down its annual minimum wage decision amid slowed labour growth.

BIS Oxford Economics Head of Macroeconomics Sarah Hunter tells Ross Greenwood action is required from both sides to benefit the economy.

“Seeing how government and the RBA can coordinate… that is the key question.

“I think there will be some pressure on the government, whether they respond to it or not remains to be seen.”

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House Economics Committee former chairman Tim Wilson tells Ross Greenwood cutting interest rates could cut a family’s disposable income.

“I’m very concerned about interest rate cuts.”

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Deborah Knight
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