Economy unlikely to live up to RBA’s expectations

The Reserve Bank of Australia (RBA) sounded a bit more confident in its economic outlook when it decided to leave interest rates unchanged at 1.5% for the 26th month today. But we still think that GDP growth will fall short of the Bank’s optimistic forecasts and believe that the RBA won’t raise interest rates until late in 2020. That means the Australian dollar may weaken further next year.

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