RBA Expected to Cut Interest Rate

Economists are near-unanimous in predicting that the Reserve Bank of Australia (RBA) will cut interest rates by one-quarter of a percentage point at its upcoming meeting on Tuesday, according to The Australian Financial Review.

Although some economists have raised the prospect of a deeper cut, most expect the central bank to trim the cash rate to 2.5 per cent.

Most economists say a deeper cut of one-half of a percentage point would send an unwanted signal about the health of Australia's economy.