An economist thinks Australia's Reserve Bank will soon cut the cost of borrowing, to provide a much needed jolt of stimulus to the economy.
The country's central bank last week left the cost of borrowing unchanged at 4.25% - the level it has been at since December.
However, AMP chief economist Shane Oliver says he thought the bank should have, and could have, cut the cost of borrowing.
"What we did see from the Reserve Bank was a softening of their rhetoric. But of course they delayed cutting until they get a look at the inflation figures which come out in about a month's time," he says.
Mr Oliver says the bank's latest statement drops reference to waiting for a "material softening" before making any cut.
