By Tom Higham

You heard it here first!

Apparently RBS believe that the Australian dollar will come under pressure under speculation the central bank will lower interest rates further.  Currency strategists at RBS are looking at the key rate to “fall to 2 percent”.

The Reserve Bank of Australia (RBA) cut the official cash rate by 25 basis points to three per cent on Yesterday, the lowest level in 49 years.

The implications from forecasts of a further sharp contraction in the global economy were “yet to be seen” in Australia.  Economic growth fell by 0.5 per cent in the December quarter and the snapshot for the March quarter will be released on June 3.