Australia 'set for one more rate cut'

Australia's central bank may cut rates one more time, experts in the country are predicting.

Analysts anticipate a possible further move by the Reserve Bank of Australia to lower its cash rate from the current three per cent level, reports AAP.

Commonwealth Bank economist James McIntyre tipped a possible reduction in September, with rates being raised again next year as the economy recovers, although he said the board of the bank will be "reluctant cutters" if they do trim it.

Should rates be lowered, this may help reduce mortgage rates for those seeking to buy homes in Australia.

In his statement on monetary policy at the bank's meeting earlier this month - which held the cash rate - governor of the bank Glenn Stevens noted that the level of housing market activity in the country is expected to increase over the next few months, while prices are rising.

He also noted there is "some scope for further monetary easing" - meaning more rate cuts are feasible if required.
 

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