SAR Daily Price Discussion, page-236

disallowed/business/the-economy/cba-tips-rates-to-hit-0-75-percent-within-months-as-rba-signals-further-cuts-20190618-p51ywo.html

CBA tips rates to hit 0.75% within months as RBA signals further cuts.


Australia's biggest lender has predicted interest rates will fall below 1 per cent by November, as the Reserve Bank looks to jolt the economy out of a stupor while Parliament argues over tax cuts.The Commonwealth Bank jumped on signals from the central bank on Tuesday that more interest rate cuts are imminent, forecasting rates will hit a record low of 0.75 per cent before Christmas. RBA governor Philip Lowe: the bank says employment is unlikely to grow faster than population growth. CREDITETER BRAIG The market has priced in a 100 per cent chance of a cut to 1 per cent by August, from the current 1.25 per cent.


The rapid easing of monetary policy comes as figures show $393 billion has been wiped from the value of the nation's housing stock in the past 12 months - $15,720 per person - as falling house prices combine with low wage growth to deliver a double hit to the retail sector. Advertisement