Why two cuts may not be enough

As the economic outlook has softened the RBA is inching closer to a rate cut. The analyst consensus has now come around to our view and foresees two 25bp cuts by early next year. But we think that the reduced potency of monetary policy combined with the ongoing downturn in the housing market means that the RBA may have to lower rates by even more.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.