The Australian sharemarket is poised to open lower on Monday after US stocks were jolted on Friday by President Donald Trump's threat of tariffs on Mexico. The Standard and Poor's index fell 1.32 per cent during Friday's session to close out its biggest May slump since 2010.
Economists expect there will be a second 25 basis points decrease in the cash rate to 1.0 per cent in coming months, likely in August. "We do think the case for two rate cuts has already been made, based on recent employment, inflation and financial stability developments," a Nomura note said.
What's the point of an RBA cut. Bank lending rates to business are completely unrelated to the RBA benchmark. It will have no effect on business or mortgage rate. Time to call out this crap economic lever. It doesn't work.