ANZ Chief Economist Expects Reserve Bank of Australia (RBA) to Cut Rates in 2016
Researchers from ANZ, one of Australia’s biggest banks, suggests that the Reserve Bank is likely to cut the official interest rates in early 2016.
The ANZ research note published last week, expects the RBA to make two successive cuts totaling 0.5%, to the cash rate early next year. This would result in an official cash rate of 1.5%. ANZ’s Chief Economist expects that the cuts to the cash rate are likely to come in February and March 2016.
The low Australian dollar and the reduced level of support the housing industry is providing the economy are stated as key factors that would prompt the RBA decision to cut interest rates.
This latest report suggests that borrowers should demand an even lower rate if looking for a fixed rate home loan and something to seriously consider when deciding if they should fix their home loan.
If the report is correct and the Reserve Bank does cut half a percent off the cash rate in early 2016 this may continue to stimulate Australia’s property price growth.
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