By leaving interest rates on hold at 2.0% for the fifth month in a row today, the Reserve Bank of Australia (RBA) demonstrated that the recent falls in equity prices have not increased its appetite for further rate cuts. We expect that a more general weakening in the economic outlook for next year, however, will bring rate cuts back onto the agenda soon, with rates eventually falling to 1.5%.
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