Economist answers big question on interest rates as cash rate is lowered

An economist doesn’t believe mortgage holders should expect another interest rate cut in April after the cash rate was lowered on Tuesday.

The Reserve Bank of Australia (RBA) announced a 25-basis point cut, marking the first time interest rates have been slashed in almost five years.

But for those expecting another rate cut at the next RBA meeting in April, AMP Chief Economist Shane Oliver said it was unlikely to happen.

Click PLAY to hear Tony Jones’ chat with Shane Oliver

“I reckon the Reserve Bank would avoid doing another cut before the election,” he said on 3AW Drive.