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Devika Shivadekar, an economist at financial services firm RSM Australia, said last month’s inflation figures were the decisive factor behind a likely rate cut in July.
However, some economists remain unconvinced about a July rate cut and believe the RBA may wait until August instead.
“That would be in August.”
What a lower cash rate means for mortgages
“While the relief from an RBA cut is reasonably minuscule in comparison to the previous 13 hikes, four of which were doubles, every small release of pressure is welcome. A third cash rate cut in four meetings will also be further confirmation we’re now coming down the other side of the rate hike mountain,” she said.
“Just 10 per cent of eligible Commonwealth Bank customers asked to lower their direct debits after May’s reduction, while the rest left repayments unchanged,” it said in a statement.