As the RBA seeks to boost the economy, Australia’s largest lender expects official interest rates to fall below 1% in November.
On Tuesday, the Commonwealth Bank, based on signals from banks, judged that more interest rate cuts are imminent. It is expected that the official interest rate will reach a historical low of 0.75% before Christmas.
The financial market has predicted that the probability of a 0.25% rate cut in August is 100%.
The rapid easing of monetary policy coincides with data showing that the value of homes in Australia has evaporated by 393 billion yuan in the past 12 months, and the decline in house prices and the weakening of wage growth have brought a double blow to the retail industry.
Westpac-Roy Morgan’s survey showed that consumer confidence has fallen for three consecutive weeks after a rebound in the league party election.
Https://www.smh.com.au/business/the-economy/cba-tips-rates-to-hit-0-75-percent-within-months-as-rba-signals-further-cuts-20190618- P51ywo.html