From Shane Oliver has been fully macrobated:
Will Australian interest rates ever go up?
While the global economy is seeing its fastest growth in years and the US Federal Reserve has increased rates five times since December 2015 and is on track for more hikes this year, the Reserve Bank of Australia (RBA) has now left interest rates on hold for a record 21 months in a row. The Australian economy is in a very different position to the US. While the RBA continues to expect that the next move in rates is most likely to be up, and we tend to agree, we now don’t see a hike until sometime in 2020. And the next move being a cut cannot be ruled out. This note looks at the reasons and what it means for mortgage rates, the $A and investors.Five reasons why rates will be on hold into 2020
We have been looking for a rate hike in early 2019, but have now pushed that out to 2020 for the following reasons:
