$20 billion wiped off markets
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