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Thursday, December 04 2014

(SOURCE: Property Observer)

Peter Martin, the economics editor of The Age, says the Reserve Bank of Australia is stirring.

He was confidently advised the Reserve Bank board is considering cutting its cash rate when it next meets on 3 February next year.

"A cut isn't completely locked in and a lot can change in two months," he told his readers adding most of the arguments line up in favour of a cut.

"One is that a cut would boost the economy without stoking damaging inflation.

"Another is that a cut would help bring down the dollar, which itself would boost the economy."

Martin maintains the "only cause for concern" was it might restoke an unsustainable real estate boom.

"The Bank has other measures in mind to deal with that including tougher lending standards for banks that lend to real estate investors," he advised.

Posted by: Greg Carroll AT 08:53 am   |  Permalink   |  Email