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Investors told to brace for an imminent rate cut


As soon as next month, investors could be facing an out-of-cycle rate move from the Reserve Bank.

Managing director of Market Economics Stephen Koukoulas expects a rate change sooner rather than later, after a record run at 1.5 per cent since August 2016.

Mr Koukoulas believes a cash rate cut in May is likely in light of flat inflation growth, with the latest consumer price index from the ABS reporting no movement (0.0 per cent) in the March quarter of 2019.

“We’re going through a period where official interest rates are probably going to go to 1 per cent, if not lower, and off the back of that, we’re going to see fixed rates, variable mortgage rates [drop] over the [following] six months,” he told Nest Egg sister title Mortgage Business.


These predictions come as a round of popular lenders announced rate cuts to their home loan packages this month, which you can read about in detail here.




Investors told to brace for an imminent rate cut
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