Timing for RBA rate cut

Timing for next RBA interest rate cut is likely to be May or June 2013

Several economists and financial markets have different ideas on when the next interest rate cut or cuts will take place.

Some analysts believe the Reserve Bank should continue with further cuts which since November 2011 have dropped by 175 basis points.

Financial markets are tipping a rate cut of a further 25 basis points this Tuesday and the cash rate could fall to 2.5 per cent by the end of this year.

Some economists are being more cautious and believe we will see a rate cut in June this year. 

By Darryl Simms 

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