Just in, Goldman Sachs has changed its call on interest rates, and is now forecasting two rate cuts in 2015 (they previously forecast no more rate cuts):
We now expect the RBA to ease interest rates in March 2015 by 25bps and August by 25bps taking the cash rate to 2.0%. We expect the RBA will leave interest rates unchanged until 2Q16 when we expect the RBA to commence a tentative tightening cycle. Our A$ view of 82c on a 12-month view may look too optimistic relative to the change in our interest rate forecast, however, much will depend on the outlook for capital flows and commodity prices into early 2015 and a case can be made that the A$ will encounter more resistance as it approaches 80c.
