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Interest Rates predicted to go to 1%

One a recent poll done by Nine Entertainment, 3 economists said that they believe that interest rates would drop in 2019. AMP Shane Oliver being one of those 3 that has predicted the reduction in the cash rate from the RBA believes that the RBA will not only do one cut in 2019/20 but there will be 2 cuts taking place to bring the cash rate back to 1%.

Most other economists argue that a drop in rates would not happen due to the robustness of the National and Global economy at present combined with low unemployment and an overall healthy outlook. The only support that a reduction in rates would be the softening of the Sydney and Melbourne property markets. But given that other markets around the country such as Brisbane and Hobart are doing well, it is unlikely that this will happen. Time will tell.

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