There’s not a lot of good news in the economy at present. The latest data showed profits, job ads and tourist arrivals all fell. The main piece of good news is that consumer prices were flat in the latest month and annual inflation is at 2½ year lows. And petrol prices continue to decline with more falls on the way.
With inflation under control and the economy effectively treading water, the Reserve Bank is well placed to cut interest rates again. We expect a rate cut tomorrow of at least 25 basis points or a quarter of a per cent. At the same time that rates are falling, the Aussie dollar is also softening, delivering a healthy dose of stimulus to the economy.
To read the full CommSec report, click here.
