Interest rates decision live updates: Reserve Bank tipped to deliver cut; Mortgage-holders hoping for relief

The consensus in the financial market is we’re going to get a 25-basis-point cut today.

But there’s a school of thought that the Reserve Bank could bring even more relief to struggling households and businesses.

Betashares chief economist David Bassanese wrote yesterday that there’s a case for a 35-basis-point cut.

“I’d like to see the RBA cut rates by 0.35 per cent to 4.0 per cent, so we can finally get the cash rate cut back to cleaner 0.25 per cent level increments,” he said.

“The RBA could follow up this generous rate cut by playing down the prospect of another cut anytime soon (ie deliver a ‘hawkish cut’).”

Unsurprisingly, he is adamant the RBA should ease rates today, going so far as to claim a hold would undermine the central bank’s “still-tarnished public reputation”.

“The case for a rate cut this month has been clear ever since the release of the Q4 CPI report,” Bassanese wrote.

“Underlying inflation has come down quicker than the RBA expected and the economy deserves to be rewarded for its good behaviour with a rate cut ASAP.

“To not cut rates this week would effectively renege on a promise to deliver interest rate relief once there was sufficient progress on lowering inflation. It would break the hearts of millions of Australians.”