A survey of 18 economists by the Australian Associated Press revealed the following:
- All 18 economists believe the RBA will cut interest rates
- 11 economists expect the rate to drop by 0.75% (75 basis points) putting interests rates at 4.5% (the lowest since June 2002)
5 economists believe the cut will be 1% (100 basis points) leaving interest rates at 4.25%, the lowest level ever.
Time will tell who wins the bet, but home owners and buyers alike will be the winners of any rate cut.