by Chris Becker
ANZ Research has just downgraded its growth forecast for the Australian economy from 3% to 2.5% for 2015, while calling for the RBA to cut 0.5% or 50 basis points from 2.5% to 2% over the year.
They are also suggesting the current near record low 10 year government bond yield will fall to 2.1% by the end of the year, lower than US Treasuries.
The case for rate cuts has been building over the past two months with weaker than expected GDP numbers released in early December and ongoing softness in non-mining activity outside of residential construction.
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They’ve read that well. The only standout now is the ever optimistic chaps at the CBA who have a rate hike planned in early 2016.