Dubbo homeowners and retirees relying on income from invested money may be some of those looking closely on Tuesday when Australia’s central bank board meets to decide whether they should cut the cash rate for the first time in a year.
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The Reserve Bank of Australia’s (RBA) cash rate already is at a record low of two per cent, with the May meeting marking 12 months since the last change – a 0.25 per cent cut.
The meeting comes after the quarterly consumer price index fell for the first time in eight years last week.
The boss of Greater Bank, a new name for the Greater Building Society that has operated a branch at Dubbo since 2004, is not predicting any movement in rates on Tuesday.
"The recent employment data reinforces my view that the economy is not performing that badly,” Greater CEO Scott Morgan said.
“While the recent low inflation data is something to watch there are still no obvious economic drivers for a rate change this month.
“The RBA will wait for more definitive evidence either way before making a change.
“Although, other factors remain at play such as the upcoming election, the actions of overseas central banks and worries about the Australian dollar.
“Business and consumer confidence is key."
Mr Morgan was one of 28 economists participating in a survey by finder.com.au, a comparison website.
The Greater opened its doors on Monday with its new name, becoming Australia’s newest customer owned bank.
New signage will be progressively rolled out at local branches.