after absolutely gutting the economy, the reserve bank will start panicking and slash interest rates.
Too late IMO.
A RECESSION-spooked Reserve Bank of Australia will give homeowners a super-sized rate cut at its meeting next month, leading economists have predicted.
Westpac chief economist Bill Evans said the central bank was trying desperately to avoid a major economic slowdown and would probably opt for shock treatment.
"The bank has been unnerved by the sharp slowdown in the Australian economy. We think there is a decent case for a 0.5 per cent move," he said.
The Reserve Bank usually moves the cash rate by only 0.25 per cent but there is a growing sense of urgency.
The double-sized rate cut predictions come with further signs of the economy suddenly cooling.
