The RBA changed tact this week and shifted away from its long-held tightening bias to a neutral stance on interest rates. This move was accompanied by a new set of downgraded economic forecasts, which project that headline inflation will not return to target until 2020. However, we still believe the RBA is too optimistic and that, as the outlook deteriorates, the Bank will be forced to cut rates to 1.00% by early 2020.
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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services