Weekend Economist: Cuts on the cards

The Reserve Bank may have left rates on hold this week, but it knows any recovery in the first half of 2010 is likely to be tepid. Rate cuts will continue to dominate the RBA’s agenda.

The Reserve Bank formally lowered its 2009 growth forecast in the May 2009 Statement on Monetary Policy from 0.5 per cent in its February Statement, to -1 per cent in today's Statement. For 2010, it also lowered the forecast from 2.5 per cent to 2 per cent.

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