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Below zero rate drop 'may come to fruition' in future

Below zero rate drop ‘may come to fruition’ in future

Mozo Director Kristy Lamont says she “does not expect” the Reserve Bank to drop the cash rate below 0.25 per cent on Tuesday afternoon, “but it may well come to fruition down the track”. “The Reserve Bank has signalled quite clearly it doesn’t intend to take below 0.25 per cent,” Ms Lamont told Sky News. “But interestingly we are seeing calls from Westpac’s Chief Economist Bill Evans, urging them to take the cash rate below zero,” she said. Ms Lamont also said “by shopping around you could score yourself a seriously low rate”. “Lenders are competing very hard for quality borrowers who can afford to make their repayments.” Image: AP