subscribe to our newsletter
BetaShares quashes talk of rate cut

BetaShares quashes talk of rate cut

Katarina Taurian
29 October 2015 — 1 minute read

Amid whispers that the Reserve Bank will cut rates before the end of the year, BetaShares has suggested a rate cut as early as next week is unlikely.

BetaShares chief economist David Bassanese said that while the lower-than-expected September quarter consumer price index (CPI) result gives the RBA added flexibility to cut interest rates should the economy require it, it does not compel a rate cut for November.

This reflects several factors, Mr Bassanese said, including that the nearer-term economic outlook “remains encouraging”, with business confidence buoyed by the new Turnbull government and job advertisements still holding up.


“There still remain dark clouds on the horizon, with a looming drought, higher bank capital costs forcing up mortgage rates, a potential near-term peak in housing construction and still bleak business investment outlook,” Mr Bassanese added.

“The RBA may well want to reserve some ammunition to deal with these challenges as we head into 2016.”







Read more:

Overseas bank loan results in hefty trustee penalties

Count Financial firm makes licensee switch 

NAB boosts super spending 



BetaShares quashes talk of rate cut
smsfadviser logo
join the discussion

Which political party will deliver better outcomes on superannuation policy?


Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super