The Deflation Bank of Australia faces a conundrum, via The Australian:
The RBA is facing up to the reality that a review of its economic forecasts on May 10 will include cuts to both its GDP growth and inflation forecasts, sharply eroding any optimism it might retain about the economic outlook.
Still, the impact on variable mortgage interest rates should be swift, as significant falls in wholesale funding costs over recent months would give banks little option but to pass on the cuts in full.