Last week, Peter Switzer went “dovish” and called on RBA Governor Dr Phil for an immediate cut to the benchmark cash rate. In case you missed it, here’s his article from Switzer Daily .
He joined a growing group of economists, including the Chief Economists from Westpac and the NAB, Bill Evans and Alan Oster respectively, who now forecast the RBA to cut the benchmark cash rate by 0.5% to just 1.0% by year’s end.
According to the NAB, “growth appears to have lost significant momentum, placing at risk further improvement in the labour market at a time when inflation poses little constraint on policy and financial stability risks have abated. We have pencilled in one 25bp cut to 1.25% in July and a further 25bp cut to 1% in November”.