Good times are about to get even better for borrowers, as the Reserve Bank makes it clear that another rate cut is on the cards.
The central bank says it's prepared to take a razor to interest rates again, following February's cut to a record low 2.25 per cent, as Australia's economic outlook continues to deteriorate.
The minutes of its March 3 meeting, released on Tuesday, reveal the bank decided to hold fire this month to assess the impact of February's surprise cut.
But bleak economic growth figures suggesting business investment could fare even worse than expected meant "further easing over the period ahead may be appropriate", the RBA said.
"On the basis of the current forecasts for growth and inflation, members were of the view that a case to ease monetary policy further might emerge," the RBA said.
CommSec chief economist Craig James said the RBA was uncertain about whether rate cuts were boosting spending and investment, or giving people cause for concern instead.
February's rate cut had come and gone and consumer confidence was weaker rather than stronger, he said.
"The RBA is peering through the fog, trying to work out where to go from here," Mr James said.
"The RBA will continue to think long and hard about the benefits of continuing to cut interest rates with no real expectation that it will kick start growth."
Westpac and ANZ economists said the language used by the RBA suggested another cut was imminent.
"History shows that the bank uses this language just prior to changing the cash rate," ANZ senior economist Felicity Emmett said.
She said a rate cut in April was likely, given the RBA's tendency to move in quick succession, since the impact of a 25 basis point cut on the economy was very small.
Westpac senior economist Matthew Hassan said the RBA's language suggested there was scope for more than one cut.
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