All four major banks are predicting the Reserve Bank will cut its cash rate by 25 basis points to 3.5% at its meeting tomorrow.
Paul Bloxham, chief economist at HSBC, said he expects a 25-basis-point cut tomorrow with “a risk” that the RBA could move by 50 basis points.
MYOB said a rate cut would be key for small business, with more than a quarter of SMEs using their home loan to finance their business activities in some way.
“For many business owners, even those without commercial finance, an interest rate move doesn’t just affect their ability to repay the family home loan,” MYOB chief executive Tim Reed said.
“For too many, home loan interest rate moves also affect their ability to keep their livelihood on an even keel.”