The minutes of the Reserve bank board meeting from August show that the bank intends to cut rates at its September board meeting. Analysts said the RBA had made its intentions crystal clear. The only question is whether the RBA will move by 0.25 per cent or 0.5 per cent. Westpac said the language in the minutes was strong and a 0.5 per cent cut is better policy. Markets have fully priced in a full one per cent of rate cuts by April next year. The RBA noted weakened consumer spending, lower auction clearance rates and below average business confidence as reasons to ease monetary policy.

Source: Herald Sun