The flow of positive economic news since the last Reserve Bank of Australia (RBA) meeting makes it a sure bet that the RBA will leave rates on hold at 2.0% for the seventh consecutive month when the Board meets on Tuesday 1st December. The likelihood of rate cuts further ahead has undoubtedly also fallen since the last meeting. However, we still believe that GDP growth in 2016 will come in below the RBA’s forecast and that low underlying inflation is likely to become a problem. As such, the RBA will have no choice but to cut interest rates again next year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services