Benign inflation, dairy price slump may spur more aggressive rate cuts

Thu, 16 Jul 2015

By Paul McBeth July 16 (BusinessDesk) - The Reserve Bank may have to cut interest rates more aggressively than previously signalled as it contends with an unexpectedly sharp slump in dairy prices and the prospect of low inflation becoming embedded in the economy. Governor Graeme Wheeler will review the 3.25 percent official cash rate next week and is expected to cut it by a quarter-point, having embarked on an easing cycle last month as inflation remains below his target band and as falling dairy prices lead to a deterioration in the coun...

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