Billionaire Ray Dalio claims more RBA rate cuts could harm property market

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PHOTO: Ray Dalio has warned of Australia’s ‘mini bubble’ in property. Photographer: Jason Alden/Bloomberg Source: Supplied

A billionaire hedge fund founder has weighed in on the Australian property market — and the news isn’t good.

Bridgewater Associates founder Ray Dalio will visit Australia later this year for the Sohn Hearts & Minds Investment Leaders conference.

Speaking with several media outlets ahead of the event, Mr Dalio warned that further interest rate cuts by the Reserve Bank of Australia could worsen our property “mini-bubble”.

This month, the RBA made the historic move of cutting interest rates to an all-time low of 1.25 per cent, ending weeks of frenzied speculation.

On June 4, RBA governor Philip Lowe revealed the cash rate would be slashed by 25 basis points, from a previous low of 1.5 per cent — the first time the official cash rate had been cut in almost three years.

But many Australian economists predict this is just the first of several cuts headed our way, with a second 25 basis point reduction believed to be on the cards as soon as August, while others claim it could be slashed to 0.5 per cent within months.