Further cash rate cut expected later in the year: RBA

PHOTO: RBA

The RBA have suggested that the there will be another cut later in the year.

“Financial market pricing implied that the cash rate target was expected to be lowered by 25 basis points at the present meeting, with a further 25 basis point reduction expected later in the year,” the RBA said in their June 2019 meeting minutes.

“Given the amount of spare capacity in the labour market and the economy more broadly, members agreed that it was more likely than not that a further easing in monetary policy would be appropriate in the period ahead.”

The meeting minutes highlighted that the Coalition government win, paired with APRA’s announcement that they will loosen their lending standards, will effect the housing market.

The RBA Governor Philip Lowe said in the June meeting minutes that it is too early to determine the overall effects, however he cited the auction clearance rates in Sydney “increasing noticeably following these developments.”