Majority of Aussies Expecting Cash Rate to Fall Below 2 per cent
A survey has been done among the Australian consumers, in which polling has been done on the cash rate decision of RBA that revealed that majority believes that the rate will fall down from 2% before the end of this year.
If we talk about the ratio of the polling than it comes to be 3:2, as 60 per cent believe that there will a rate cut while the remaining 40 per cent believe that the rate will be steady this year.
The figures calculated from the survey were as follows:
- 44% of the 907 online respondents expect the cash rate to be lowered to 1.75%
- 16% thought it could drop to as low as 1.5%.
An Investment group that carried out the survey along with a financial advisory is Cigna Wealth. Its managing director Kent Leicester says, “It is reassuring the RBA still has more room to move than most other central banks around the world. The RBA has been reducing the cash rate since November 2011 and has cut the official rate twice this year in response to subdued consumer confidence and fragile economic conditions”.
He further added, “Consumers expect the cuts to continue with worrying international economic developments and weak conditions on the domestic front and this current period of record low interest rates is a win-win situation for mortgage holders with the capacity to pay back that little bit extra”.
News Source: http://www.yourinvestmentpropertymag.com.au/news/survey-says-rba-likely-to-cut-official-cash-interest-rate-204786.aspx