Rates may be cut later this year
The RBA still has room to move on cutting interest rates if needed this year. Although the RBA has made a decision not to reduce interest rates this month, they could cut rates in coming months particulary if the economy starts to falter.
Commonwealth Bank of Australia senior economist John Peters said the sharp fall in activity in the services sector reflected "battered business and consumer confidence and consequent sharp slowing in domestic demand.
"Very weak services sector activity is broad-based as both business and consumers clamp down on spending activity,""This is a pause, it's not the end of the easing cycle." Mr Peters said in a statement.
As the interest rate cutting cycle is now complete it will be a matter of waiting to see how consumers react to all of the recent interest rate reductions
