Australian interest rates

Capital Economics joins the three rate cuts club

David Llewellyn-Smith
Tuesday, 28 May 2019
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Capital Economics has moved to three rate cuts this year

The RBA has telegraphed that it will cut interest rates to 1.25 per cent in June and we think it will follow up with another 25 basis points cut in August.

But we suspect that further easing will be needed to lift GDP growth towards potential and return underlying inflation to target.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.