One of the nation's biggest home lenders believes the Reserve Bank will cut interest rates at its next two meetings to take pressure off the Australian dollar and protect the nation from the impact of deep cuts in government spending.
The ANZ said yesterday it believed the Reserve would use its October 2 meeting to take a quarter percentage point off official rates and follow that up with a similar-sized cut at its traditional Melbourne Cup Day meeting.The bank said falling commodity prices, the strong Australian dollar, the impact of cuts by Federal and State governments and the failure of earlier rate cuts to lift consumer confidence and activity meant the Reserve was in a position to surprise investors and mortgage holders.
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