Key events
Reserve Bank widely tipped to cut rates today
Patrick Commins
Borrowers should be in for some welcome good news today, with the Reserve Bank board widely expected to deliver an interest rate cut at 2:30pm, Sydney time.
Financial markets and economists agree that a second straight cut is essentially a done deal, although there’s always a chance that the central bank will surprise us all and hold.
If they do follow up with a 0.25 percentage-point move lower to 3.6%, it will be the third cut in the RBA’s cash rate target, following moves in February and May.
Weak household spending and a bigger than expected drop in inflation in May both supported the case for lower rates, economists say, not to mention the looming threat of Donald Trump’s trade war.
A rate cut today would trim $76 from the monthly interest bill on a $500,000 mortgage, bringing the total benefit of this year’s cuts to nearly $230 once lenders pass them on to their customers.
Of course, what’s good news for existing homeowners is more problematic for would-be homeowners, who are seeing property prices accelerating again as borrowing costs fall.
RBA governor Michele Bullock will hold a press conference at 3:30pm where she will no doubt be asked whether we can expect further rate cuts this year.
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Good morning and welcome to our live news blog. I’m Martin Farrer with the best overnight stories before Rafqa Touma picks up the news baton.
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