Reserve Bank slashes growth forecasts, frets about housing fallout, June rate cut bets back on

The Reserve Bank has slashed its forecasts for economic growth as subdued household income and the real estate correction continue to bite. 

In its quarterly statement on monetary policy released this morning, the RBA says weakening household consumption is a "key risk" to the economy especially in the context of falling real estate prices. 

ABC's Peter Ryan says the RBA now has case to cut the cash rate as early as June.

Source: Reserve Bank of Australia