Australia – where next for RBA interest rates, and when? via ForexLive

Interest rates – where now for the RBA?

From CBA chief economist Michael Blythe:

• Has pushed the forecast for RBA cash rate hike from February back to August 2015 now (if we're not all dead from Ebola by then, that is)
• Says “The RBA needs more of it to assess emerging trends. They are prepared to buy it through macroprudential initiatives. And near-term inflation trends offer some time.”

Macquarie, though, is mentioning about risk of RBA cash rate cut

• Risk of a cut has grown as the RBA
• Now that the RBA is prepared to use macro-prudential tools to deal with the housing market, it leaves some leeway to lower the cash rate

• BUT … Macquarie go on …. their forecast is unchanged that the RBA will hike the cash rate next in February 2016

posted via ForexLive