Get set for an August interest rate cut

Stephen Koukoulas

Market Economics Pty Ltd

Get set for a further interest rate cut at the August RBA Board Meeting. With the economy expanding at a moderate pace, at best, the unemployment rate appearing to edge up, and global economic conditions only fair, there's a solid case for a 25 point cut, to a record low of 1.5 percent. It will be the inflation data on Wednesday that will help to lock in the case for lower rates. Based on available information, inflation is set to rise by 0.8 percent in the June quarter, leaving annual inflation at 1.4 percent. A jump in global oil prices during the June quarter drove a sharp lift in petrol prices. This will account for around 0.25 percentage points of the 0.8 percent inflation rate. A further interest rate cut will see official interest rates at a never before seen 1.5 per cent. Read more for my thoughts on mortgage rates and growth: (VIEW LINK)

Stephen Koukoulas
Chief Economist
Market Economics Pty Ltd

Stephen Koukoulas has a rare and specialised professional experience over more than 25 years as an economist in government, as Global Head of economic and market research, a Chief Economist for two major banks and as economic advisor to the Prime...


I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Please sign in to comment on this wire.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter