From the AFR:
HSBC has cut its Australian growth forecast to 2.4 per cent from 2.6 per cent for 2015 because of lower expectations for Chinese economic growth and a lack of investment spending by businesses, which it sees as part of a global phenomenon.
Paul Bloxham, HSBC’s chief economist in Australia, now sees the Reserve Bank of Australia staying on hold for all of 2016, removing his forecasts for rate hikes in the second-half of next year.
Australia is not unique in experiencing a lack of business investment. The United States is consistently falling short of its growth expectations because of an absence of investment, argue HSBC economists Stephen King and James Pomeroy in new research.
This is the fourth or fifth time for this push back. Let’a face it, Bloxo, rates are going to fall.