Rate cut likely next week as RBA hostage to global headwinds and local slowdown

Source: Thomson Reuters "RBA WATCH"

Reserve Bank governor Dr Philip Lowe has signalled that interest rates will be cut to a new record low of 0.75 percent next week. 

Dr Lowe has blamed foreign central banks for laying the groundwork for near zero interest rates by early next year.

Ernst & Young chief economist Jo Masters speaks discusses the global and local headwinds with ABC's Peter Ryan.