Most economists are now predicting several interest rate cuts, taking the official rate into unchartered territory. Some say it could go as low as 1 per cent, or even lower.

The case for a rate cut is based on several arguments. Global economic growth is slowing, trade wars are at risk of escalation, cost of living pressures continue to build, house prices have been falling, and unemployment is coming off its lows. We face several headwinds.