Go offline with the Player FM app!
Mark Smith: ASB Senior Economist on the drop in inflation and potential interest rate cuts
Manage episode 429409607 series 2098280
Rate cuts could arrive early as next month, banks are predicting.
Inflation fell to a 3-year low yesterday, reaching 3.3% in the June Quarter.
Although that falls outside of the Reserve Bank’s target band of 1-3%, banks have reacted positively to the move.
ANZ have cut their three year home loans rates to 6.35% and the two year rates to 6.49%.
ASB Senior Economist Mark Smith told Ryan Bridge they’re predicting two rate cuts before Christmas: a 25 bps cut in October, and another in November.
He said that factors such as pricing pressures, external inflation, and pressures in the housing market are beginning to ease, which the Reserve Bank can use as a positive sign that inflation will remain low once rates are cut.
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
3013 episodes
Manage episode 429409607 series 2098280
Rate cuts could arrive early as next month, banks are predicting.
Inflation fell to a 3-year low yesterday, reaching 3.3% in the June Quarter.
Although that falls outside of the Reserve Bank’s target band of 1-3%, banks have reacted positively to the move.
ANZ have cut their three year home loans rates to 6.35% and the two year rates to 6.49%.
ASB Senior Economist Mark Smith told Ryan Bridge they’re predicting two rate cuts before Christmas: a 25 bps cut in October, and another in November.
He said that factors such as pricing pressures, external inflation, and pressures in the housing market are beginning to ease, which the Reserve Bank can use as a positive sign that inflation will remain low once rates are cut.
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
3013 episodes
All episodes
×Welcome to Player FM!
Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.