Published: February 21, 2019
Bill Evans says falling house prices will create a ‘negative wealth effect’ and drag down the economy, forcing the RBA to act
The Reserve Bank will be forced to make two cuts in interest rates this year as falling house prices create a “negative wealth effect” that will drag down the whole economy, says one of Australia’s most respected economists.
The cuts would most likely come in August and November and would reduce the cash rate to a record low of 1%, Westpac’s chief economist, Bill Evans, predicted on Thursday.
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