CBA's Michael Blythe predicts 1.25 percent cash rate

Jonathan ChancellorMay 12, 20160 min read

The Commonwealth Bank of Australia predicts another two official Reserve Bank of Australia interest rate cuts will occur in 2016.

It would take the cash rate to 1.25 percent.

CBA's chief economist Michael Blythe said he felt obliged to add another cut to our cash rate profile in November following the one already pencilled for August.

In a note to investors he said there was also a risk that those two cuts come earlier, he said.

The CBA is alone among the big four in tipping a 1.25 percent cash rate by November.

NAB expects the Reserve Bank to hold at 1.75 percent for the rest of 2016.

Westpac and ANZ Bank economists expect one more cut in August.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.
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