Skip to main content

Australian rates have bottomed out

The Reserve Bank of Australia (RBA) left its policy rate unchanged at 3.0% today as expected. The accompanying statement struck a more hawkish note than previous releases and markets are pricing in a sharp increase in the cash rate over the coming 12 months. However, we think that an anaemic global recovery and ongoing weakness in domestic demand will keep policy rates low well into 2010.

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


Get access