Original article by David Rogers
The Australian – Page: 17 & 24 : 5-Feb-20
Financial markets still expect the Reserve Bank of Australia to reduce the cash rate by June, after it left rates unchanged at 0.75 per cent on 4 February. The general consensus of economists is that the cash rate will remain on hold in March. Meanwhile, economists had expected the RBA to downgrade its economic growth forecasts for 2020 and 2021 in the wake of the bushfires and the coronavirus crisis, but these have been left at 2.75 per cent and 3 per cent respectively. The central bank also expects the unemployment rate to remain at around 5.1 per cent in 2020, before easing to less than five per cent in 2021.
RESERVE BANK OF AUSTRALIA