RBA likely to slash interest rates to record low to boost ‘soggy’ economy

Stephen Koukoulas says the Reserve Bank of Australia is likely to trim official interest rates to a fresh record low of one per cent because the economy is ‘a little bit soggy’. The leading economist told Sky News ‘we know inflation is low and wages growth is hovering near record lows, so they’re just wanting to give us consumers with a mortgage a bit of extra cash flow’. Mr Koukoulas says the expected rates cut will also help the business sector, which has an estimated trillion dollars of debt, improve its outlook. The RBA is expected to deliver its interest rates decision on Tuesday afternoon. Image: AP

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