Saul Eslake: We need a lower currency not lower rates

Saul Eslake, Chief Economist at BAML, shares his views on the upcoming rates decision for the RBA. Eslake says the lack of new economic data over the past month will be a limiting factor for the RBA. He also says whilst there has been anecdotal evidence of renewed investor interest in property markets, there isn't enough supporting data yet to have a clear view on any flow on effect from the recent rate cut. "I think they are potentially making a mistake cutting rates now. Because what it will do is give further stimulus to the one area of the economy that doesn't need further stimulus - namely housing. Whilst not doing much or those areas of the economy that could do with more help. Lower interest rates are not what those parts of the economy need - what they need is a lower exchange rate and I think they will get that by the end of the year.” Watch the interview here: