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RBA cuts rates to 0.75%

01 Oct 2019

At its meeting this month, the RBA decided to cut official interest rates by 0.25% to 0.75%, a new historical low.

It’s now widely expected that the RBA will cut rates again. Macquarie gauges the RBA will now pause, having halved the cash rate from 1.5% in May and will cut a further 0.25% in February next year.

Assuming a further rate cut to a new low of 0.5% in 2020, Macquarie sees Australia’s growth recovering slowly from 1.4% currently, to 2.5% by the end of 2020.