Australia & New Zealand Economics

Australia & New Zealand Economic Outlook

17 January, 2019

Housing downturn will force RBA to cut rates

We think that 2019 will be the year in which previous excesses in Australia’s housing market will catch up with the economy. We believe that the deepening housing downturn will become a far bigger drag on Australia’s GDP growth than most anticipate. Rather than hiking interest rates as most anticipate, we think the Reserve Bank of Australia will have to respond by cutting interest rates later this year. That means that the Australian dollar should weaken further instead of strengthening as many

Access this publication and more, take our free trial subscription today.

Free Trial

Already a subscriber? Simply log in to view this article.

Save to Library

New Book

Making a Success of Brexit
and Reforming the EU

by Roger Bootle

"Outstanding - engaging - absorbing"
Daily Telegraph

Buy now on Amazon
We use cookies to ensure you get the best experience on our website. Read our Cookie Policy for more information.