From Capital Economics:
When taken together with the RBA’s valid concerns that cutting interest rates further would threaten financial stability, today’s data suggest that underlying inflation is now at a level that the RBA will be willing to tolerate.
As such, we are no longer expecting the RBA to cut interest rates further. That said, price pressures and economic growth are not strong enough to warrant interest rate hikes. Interest rates are unlikely to rise above 1.5 per cent this year or next year.
Lol. I’m not sure who’s left of the doves. NAB and MQG have one cut still penciled in, I think.
MB virtually alone again. Just like 2011 and the way we like it. Strangely, it appears nobody has learned anything in the intervening period given the reasons are the same.
As iron ore and coking coal revert to mean, and the terms of trade hit new lows, the next RBA move remains firmly DOWN.
