The Reserve Bank of Australia (RBA) left its policy rate unchanged at 3.0% today as expected. Despite rising business and consumer confidence, both ourselves and the RBA believe that the near-term outlook for business investment is weak and that the prospects for consumer spending are especially uncertain. Accordingly, we still see rates remaining on hold until Q1 2010 and then expect that the pace of tightening next year will be far slower than the markets have currently priced in.
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