The current cash rate of 2.5% is expected to remain throughout the year as the economy experiences a decline in employment amidst high property demand.
AMP chief economist Shane Oliver points out that employment will be the deciding factor, as it continues to lag behind expectations. However, NAB chief economist Alan Oster believes that the rate cut will happen within the year, but no sooner than June of this year.
Although the RBA has cited the current economic situation as favorable for the current cash rate, further cuts will depend on the performance of the property sector and how low the Australian currency can go.
Read more about this on the Adviser website.