Get set for an August interest rate cut

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)