RBA still has more work to do

The Reserve Bank of Australia’s (RBA) repeated statements that it is still open to further rate cuts, depending on the incoming data, have not changed the view of some that 2.0% marks the floor for rates in Australia. But we remain confident that rates have further to fall. While it’s still early days the incoming data suggest we are right in expecting the economy to slow markedly this year and  we expect that by the end of the year rates will have fallen to 1.5%.