Largest Australian fund manager says RBA to slash rates to 1% next year

Bloomberg have a piece up on calls from AMP Chief Economist Shane Oliver

• Sydney and Melbourne prices will drop a further 10% in 2019
• peak-to-trough fall 20%
• a "prefect storm" smacks housing
• Reserve Bank of Australia will cut interest rates in the second half of 2019, from 1.5% now to 1% by end 2019

Bloomberg link above

Full note from Dr. Oliver is here

• it will take a while to change the RBA's thinking, so we don't see rates being cut until second half next year but won't rule out an earlier move if things are weaker earlier than we are expecting. By end 2019 the cash rate is likely to have fallen to 1%.