Business

$20 billion wiped off markets

Three economists, from AMP Capital, Credit Suisse and Deutsche Bank predict a 50 basis point cut tomorrow.
Three economists, from AMP Capital, Credit Suisse and Deutsche Bank predict a 50 basis point cut tomorrow. Kieran Salsone

THE ASX200 has dived below 4000, wiping another $20 billion off the value of the market after US stocks had their worst day of the year on Friday. The dollar is trading well below 97 US cents, while the local bond market continues its rally.

As markets slump and global economic data turns sour, economists have been busy changing their predictions for tomorrow's RBA rates decision.

On Friday a small majority of economists polled by Bloomberg was still saying the RBA would stay on hold. Today 14 of 27 are now forecasting a 25 basis point cut, while just 10 say there will be no change. Three economists, from AMP Capital, Credit Suisse and Deutsche Bank predict a 50 basis point cut tomorrow.

HSBC Australia chief economist Paul Bloxham is the latest among those tipping a rate cut tomorrow, switching away from an earlier forecast of no change:

Read more at Brisbanetimes.com.au

Topics:  asx, credit suisse, rba, stock market




Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

OUR SAY: The night that matters

Prime Minister Malcolm Turnbull (L) and Treasurer Scott Morrison during Question Time at Parliament House in Canberra on Wednesday, March 16, 2016. (AAP Image/Mick Tsikas) NO ARCHIVING

Budget pivotal in outcome of Federal election

Unions urge Kevin Hogan to stand up

Clarence Valley Community Union members state their case outside Kevin Hogan’s office.

Education, Medicare and penalty rates on the agenda

Valley seniors have state's worst access to public transport

Poor planning leaves poorest seniors high and dry

Latest deals and offers

Clarence Valley Council evacuation

Clarence Valley Council general manager Scott Greensill talks to the four staff kept in isolation after discovering white powder in a mail delivered to the council records room.Photo Tim Howard / Daily Examiner

Fire And Rescue NSW Grafton station officer Col Drayton explains the emergency...

Unions protest against education and Medicare cuts

PROTEST: Stephen Fletcher, Sharryn Usher, Darryl Chaffey and Robert Usher perform a stunt outside Kevin Hogan's Office.

Clarence Valley Community unions representative Sharryn Usher led a protest outside...

The McClymonts announce show at Saraton Theatre

THE McCLYMONTS: Mollie, Sam and Brooke are coming home to play at the Saraton Theatre in August.

Grafton's favourite homegrown trio The McClymonts announce a show at the Saraton...

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog

VIDEO: Art Deco fan pays $835,000 for Imperial Hotel

No Caption

Iconic "Impy" sold at a bargan price to bidder who loves Art Deco.

RBA warns of future apartment oversupply

Toowoomba: Crest Apartments and Burke & Wills, Ruthven Street ( view from Neil Street) Photo Bev Lacey / The Chronicle

RBA says oversupply of apartments poses risk to household finances