Deutsche Bank says the Official Cash Rate rate has been cut far enough by the Reserve Bank and further reductions could actually cause more economic pain.
The Reserve Bank has lowered interest rates from 8.25% to 3% in the last 10 months in response to the global economic downturn.
Deutsche Bank chief economist Darren Gibbs says no more cuts are needed, but he thinks the bank will reduce the cost of borrowing to a new low of 2.75% when it reviews interest rates next week.
He says cutting rates further may prove to be counterproductive.
