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RBA’s Lowe Says ‘Not Unreasonable’ to Expect Another Rate Cut

  • Lowe notes latest forecasts were based on assumed 1% cash rate
  • Urges banks to pass on today’s rate cut in full to help growth
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Another RBA Rate Cut Is Coming, Nomura's Ticehurst Says
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Australia’s central bank chief strongly suggested he could follow up Tuesday’s interest-rate cut with another reduction as he seeks to drive down unemployment and revive inflation.

“The board has not yet made a decision, but it is not unreasonable to expect a lower cash rate,” Governor Philip Lowe said in an evening speech in Sydney. “Our latest set of forecasts were prepared on the assumption that the cash rate would follow the path implied by market pricing, which was for the cash rate to be around 1% by the end of the year.”