Interest Rate Cuts On The Horizon
Whilst the RBA yet again left interest rates on hold at the last meeting, the pressures are rising for the RBA to shift gears.
With employment in mining and related industries heading for a significant slowdown we will see increased unemployment in the future. This coupled with little action in non mining areas will mean interest rate relief to reduce the Australian dollar will be much sought after by businesses and the general population.
The non mining sector is not in a position to take up the slack from the mining industry slow down and with the June quarter seeing the Australian economy deteriorate it is definitely time for RBA action.
To get the economy back on track the RBA will need to reduce interest rates before the end of 2014 and preferably as soon as the August Meeting.
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