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Further Rate Cuts Expected |
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Wednesday, 17 September 2008 |
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The Reserve Bank of Australia cut the official cash rate by 0.25% on Tuesday 2nd September. Since then we have seen economic data showing that Australia’s 17 year economic expansion may be slowing. This gives further reason to believe that the reserve bank will decrease the official cash rate by a further 0.25% by the end of the year.
The annualised growth rate of an Australian index of leading economic indicators slowed from 4% in June to 3.7% in July. Australia’s economy grew in the second quarter at the slowest pace in over 3 years.
Westpac Chief Economist Bill Evans has said that the growth shown in the index is below trend and that there is a strong case for a further 0.25% cut. |
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