Jul 16, 2008

The Cut

James Weir talks to a range of analysts about if and when interest rates will start coming down

The Reserve Bank could cut interest rates as soon as next week - despite inflation heading for 5 per cent - but economists say it is a close call and September may be more likely.
Some economists were picking the Reserve Bank to cut official rates three times by the end of the year, but then hold the rate at 7.5 per cent. Others suggested rates would drop to 6.75 per cent by early next year, pushing home mortgage rates down sharply.

We continue to pick September.