By leaving interest rates on hold at 2.0% for the fifth month in a row today, the Reserve Bank of Australia (RBA) demonstrated that the recent falls in equity prices have not increased its appetite for further rate cuts. We expect that a more general weakening in the economic outlook for next year, however, will bring rate cuts back onto the agenda soon, with rates eventually falling to 1.5%.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.