MARKETS SPECTATOR: Goldman's rates tip
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
Despite government economic stimulus measures, favourable weather conditions, record low interest rates and wealth gains the disappointing economic numbers will push the Reserve Bank of Australia to cut its benchmark cash rate to 2.5 per cent next month, says Goldman Sachs analyst Tim Toohey.
Australia’s gross domestic product in the three months to March 31 rose 0.6 per cent compared with Toohey’s forecast of 0.8 per cent and a Bloomberg consensus forecast of 0.7 per cent.
“With consumer sentiment declining, falling back to August 2012 levels, and signs that labour market conditions have deteriorated further, it is likely that the Reserve Bank will be disappointed with the tone of the economic data,” says Toohey. “It is likely that GDP growth will be closer to 2.25 per cent year-on-year in June compared to the recent 2.5 per cent year on year forecast by the Reserve Bank. The risks of a sooner and sharper decline in mining investment continues to threaten the economic outlook into 2014.”
Goldman Sachs expects the bank to cut its cash rate by 25 basis points at its board meeting next month. By November the central bank will have cut the cash rate a further 25 basis points to 2.25 per cent, the company predicts.
“Depending on the response of the Australian dollar, additional easing may still be required in early 2014,” says Toohey.
Call 1300 880 160
Start a chat
Schedule a call
