Mortgage provider Loan Market does not expect the Reserve Bank of Australia to make any changes to its cash rate for now.
This is amid sharp movements in the market on Monday to price in a near 75 percent chance of a 50 basis point cut when the central bank holds its monthly board meeting today.
But in a survey of 206 brokers, 55 percent felt that there will be no change in the cash rate of 3.75 percent in June.
Around 40 percent expect a 25 basis point reduction while seven percent anticipate a 50 basis point cut.
Paul Smith, a spokesman for Loan Market, noted that while another rate cut would be welcomed by consumers and the struggling retail sector, the majority of brokers expect the RBA to first assess last month’s 50 basis point reduction and study other domestic factors.
“At least the RBA has plenty of fuel in the tank should it see the need down the track for more rate relief,” he said.
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