Market commentators have mixed views on whether the Reserve Bank of Australia will cut official interest rates in response to a slowing economy.
Terry McCrann, a long-time business journalist known for his knowledge of the inner workings of the Reserve Bank, this week called a rate cut to be announced after the next RBA board meeting on Tuesday.
His article in the Herald Sun was widely seen as confirmation that the RBA will cut rates. McCrann was one of a group of commentators thought to have, at least in the past, been regularly briefed by the central bank.
Market economists have mixed opinions on whether the RBA will cut rates, already at a record low of 2.5%, next week or wait until later in the year or not move rates at all in 2015.
Today McCrann appeared on Sky News and was asked whether he was getting his information from inside the central bank.
“It’s my belief that the recommendation to the board will be for a rate cut,” McCrann said.
“Obviously I don’t know absolutely if they will act.”