PHOTO: The Reserve Bank of Australia
The Reserve Bank of Australia’s expected interest rate cuts won’t lift auction clearance rates above the 50 per cent mark nor stop housing prices from declining a further 5 per cent this year, JP Morgan says.
While weaker-than-expected economic growth figures last week prompted many economists to expect the central bank to cut, rather than raise, the benchmark lending rate this year, the effect of any further cuts would be less than the last rate-cutting cycle because there was less scope to cut rates, JP Morgan economist Tom Kennedy said.
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