It's "probably a matter of if, not when," the Reserve Bank cuts the official cash rate as the coronavirus impacts the economy, according to 1 NEWS reporter Katie Bradford.
Today, the Reserve Bank of Australia cut their cash rate to a new record low of 0.5 per cent as it acts to soften the economic impact of the coronavirus.
“That’s all to try and protect their economy to the different winds we’re seeing as a result of this virus,” Bradford says.
“While they face slightly different economic conditions to us over there, our Reserve Bank will be watching that very closely.”
“We’ve seen a number of economists predict that our cash rate could drop quite dramatically in the next few weeks, some even saying it could come earlier than expected.”
The next official Cash Rate announcement is expected at the end of the month.
“I would expect our Reserve Bank to take a cautious, softly, softly approach but I think it’s probably a matter of if, not when, we do see an official cash rate drop and that means an interest rate drop too,” Bradford says.