Deutsche Bank: RBA will cut rates in 2015
The Reserve Bank of Australia has left its benchmark rate unchanged today at 2.5%. The next RBA meeting will take place only on Feb. 3, 2015.
Although the RBA signaled a period of stability in interest rates and many think that the next move of the central bank will be to raise rates, Deutsche Bank expects 2 rate cuts in Australia next year: one 25 bps cut in Q2 and another in late Q3/early Q4.
The specialists think that Australian housing market will cool down, while the nation’s unemployment rate will increase and commodity process will keep falling.