Are Interest Rate Cuts Ahead For 2015?

The RBA is expected to go through the last meeting of the year with no surprises, as it is expected that the official cash rate will remain at the historic low of 2.5%. Despite previous predictions of a rate hike in 2015, more people are convinced that rate cuts are ahead, as the economy shows signs of weakness to end the year.

Bank based economists are still convinced that rate hikes are the way to go, but further easing could very well happen – with market economists expecting it to go as low as 2%, as the unemployment rate is predicted to peak to 6.75% in 2015.The country’s trade has also been affected as the price of iron ore has dropped to almost 50% from the start of the year.

Read more about this on the Sydney Morning Herald website.