Questioning the case for higher interest rates

We think the financial markets are right to pare back their expectations of how far interest rates will rise next year. Admittedly, we expect that after leaving rates at 1.5% at the meeting on Tuesday 7th November, the forecasts the Reserve Bank of Australia publishes in the Statement on Monetary Policy on Friday 10th will paint a rosy picture of the economy. But we don’t think the outlook is as good, which why we are not expecting the RBA to raise interest rates at all next year.