Invest
Will the RBA cut rates this week?
Experts are forecasting that the Reserve Bank will take a dramatic measure and fire its last bullet, cutting rates out of cycle this week before starting quantitative easing.
Will the RBA cut rates this week?
Experts are forecasting that the Reserve Bank will take a dramatic measure and fire its last bullet, cutting rates out of cycle this week before starting quantitative easing.
According to Finder’s RBA Cash Rate survey, 53 per cent of experts and economists are predicting further easing this week.
Noel Whittaker, QUT, said, “Everybody else is [cutting; the RBA] don’t have much option,” as he predicted a rate reduction will happen later this week.
While Mark Crosby of Monash University believes businesses need further support despite the government recently announcing a $17 billion dollar stimulus package.
“Businesses cannot function without a workforce while still paying rent and interest. The RBA and government need to do what it takes to get these costs closer to zero,” Mr Crosby said.
Recession likely but will be short-lived
Not only are economists tipping the RBA to make drastic changes, they are also expecting Australia’s 28 years without a recession to be over, with 87 per cent saying a short-term recession is likely.
Graham Cooke, insights manager at Finder, said COVID-19 has unexpectedly put pressure on an already weakening Australian economy.
“We’ve seen fear of recession among the Australian public grow over recent months, while the vast majority of economists were saying it wouldn’t happen,” Mr Cooke said.
The impacts of the recession are predicted to hit the stock markets, with experts also asked how low the ASX could plunge before a recovery, with the average economist pointing to a bottom of 4,460.
“If markets plunge to the depths predicted here, it will be a 37 per cent drop since the market peak of 20 February. This will be the most significant drop since the 53 per cent plunge post-GFC,” Mr Cooke said.
Economists were divided as to whether the government’s stimulus package would be sufficient, with over half saying it was not.
Finally, most experts expected house prices to be negatively affected, with 20 per cent expecting a significant drop and 60 per cent expecting a slight drop.
Mr Cooke said this downturn in the market could present a window for cashed-up Aussies ready to buy.
“If you’re one of the first-time buyers who missed out on the 2019 price dip, 2020 could provide a second bite at the apple.
“Keep a close eye on your local market, but be careful – nobody knows what may be around the corner or how long this coronavirus dampening could really last,” Mr Cooke concluded.
About the author
About the author
Economy
Consumer confidence is quickly pushing Australia’s economy from recovery to expansion
Both Australian consumers and property investors came out of last month feeling pretty chuffed about the economy. ...Read more
Economy
4 Aussie cities among 10 most liveable in the world
This year’s global liveability score has been strongly influenced by measures taken to stem the spread of COVID-19, with cities ranked according to how successfully they dealt with the pandemic. Per...Read more
Economy
Australia attended the G7 as a ‘green laggard’, new report shows
Following a weekend at the G7, Australia has been labelled a “green laggard” as a consequence of letting its green competitiveness significantly slide over the past two decades. ...Read more
Economy
Melbourne’s lockdown ends tomorrow
As announced, Melbourne will begin its path out of lockdown as of 11.59pm Thursday evening, but some restrictions will remain. ...Read more
Economy
GDP slows to 60-year low
Australia’s gross domestic product per capita growth has fallen to its slowest pace in at least 60 years, with the massive government spending looking to come at a ‘great cost to future generation...Read more
Economy
Recovery falters just a month after JobKeeper ends
The end of JobKeeper has seen a rise in defaults and administrations, which could hamper Australia’s recovery from the COVID-19 downturn, new research has revealed. ...Read more
Economy
Frydenberg considers JobKeeper return for Victorians
The federal government has granted Victoria Premier James Merlino a chance to pitch his ‘JobKeeper style’ aid, but it has refused to acknowledge that Victoria’s predicament could be linked to fe...Read more
Economy
Australia’s economy is officially back to pre-pandemic levels
As most economists predicted, Australia’s economy is back to pre-pandemic levels, the latest official figures show. ...Read more
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Dissecting the budget and what it means for your equities, property and super
Listen now
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Economy
Consumer confidence is quickly pushing Australia’s economy from recovery to expansion
Both Australian consumers and property investors came out of last month feeling pretty chuffed about the economy. ...Read more
Economy
4 Aussie cities among 10 most liveable in the world
This year’s global liveability score has been strongly influenced by measures taken to stem the spread of COVID-19, with cities ranked according to how successfully they dealt with the pandemic. Per...Read more
Economy
Australia attended the G7 as a ‘green laggard’, new report shows
Following a weekend at the G7, Australia has been labelled a “green laggard” as a consequence of letting its green competitiveness significantly slide over the past two decades. ...Read more
Economy
Melbourne’s lockdown ends tomorrow
As announced, Melbourne will begin its path out of lockdown as of 11.59pm Thursday evening, but some restrictions will remain. ...Read more
Economy
GDP slows to 60-year low
Australia’s gross domestic product per capita growth has fallen to its slowest pace in at least 60 years, with the massive government spending looking to come at a ‘great cost to future generation...Read more
Economy
Recovery falters just a month after JobKeeper ends
The end of JobKeeper has seen a rise in defaults and administrations, which could hamper Australia’s recovery from the COVID-19 downturn, new research has revealed. ...Read more
Economy
Frydenberg considers JobKeeper return for Victorians
The federal government has granted Victoria Premier James Merlino a chance to pitch his ‘JobKeeper style’ aid, but it has refused to acknowledge that Victoria’s predicament could be linked to fe...Read more
Economy
Australia’s economy is officially back to pre-pandemic levels
As most economists predicted, Australia’s economy is back to pre-pandemic levels, the latest official figures show. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
