26 Mar 2015
RBA to cut interest rates to 1.5% by December - Capital Economics
FXStreet (Bali) - Paul Dales Chief Australia & NZ Economist at Capital Economics, believes that the RBA is set to cut interest rates to 1.5% by December this year, as the economic outlook deteriorates.
Key Quotes
"While some of the latest data have suggested that economic activity in Australia has accelerated since the turn of the year, the bigger picture is that the economy is still struggling to cope with the end of the mining boom."
"Weaker than expected capital expenditure plans for 2015/16 suggest that non-mining investment will not fill the hole left behind by further falls in mining investment."
"We believe this deteriorating outlook for investment will play a part in prompting the RBA to cut interest rates to 1.5% by December."
Key Quotes
"While some of the latest data have suggested that economic activity in Australia has accelerated since the turn of the year, the bigger picture is that the economy is still struggling to cope with the end of the mining boom."
"Weaker than expected capital expenditure plans for 2015/16 suggest that non-mining investment will not fill the hole left behind by further falls in mining investment."
"We believe this deteriorating outlook for investment will play a part in prompting the RBA to cut interest rates to 1.5% by December."