Economists have been nearly unanimous in predicting interest rate hikes for 2015 earlier this year – but that is about to change, as the slow growing economy might force the RBA to go the other way around.
With the Australian dollar plummeting to a four and a half year low and a slow gross domestic product growth, more bank economists are convinced that down is the way to go. Goldman Sachs recently changed their stance for next year, becoming the latest bank to shift their monetary predictions. Deutsche Bank recently predicted a 50 basis point reduction, dropping the interest rate to 2% for 2015.
Read more about this on the Sydney Morning Herald website.