RBA minutes may reveal size of rate cuts

Analysts who expect the key cash rate to be cut next month will be watching with interest when the Reserve Bank of Australia (RBA) releases its August 5 board meeting minutes. The RBA appeared to have a marked change of heart about the economic outlook at its August meeting. It has already clearly indicated it intends to cut the official rate because of a rapid slowdown in economic growth. Financial markets expect the first move to come next month. Some economists believe last month's independent rate increases by the retail banks will force the RBA to act quickly in lowering rates for fear of crippling the economy. Lehman Brothers Australia chief economist Stephen Roberts said Tuesday's minutes may show whether there was any discussion about cutting the cash rate at the August 5 meeting. "It may be interesting to see whether... [read full story]