The official cash rate is currently at record low levels and has remained at 2.5% since 2013. Since then, more market analysts are convinced that interest rate cuts are ahead for 2015.
SQM Research recently forecasted interest rate cuts as a “dead certainty” if the Australian Prudential Regulation Authority pushes forward with their lending restriction plans. 2 of the big 4 banks, Westpac and NAB have also forecasted a rate cut for 2015, with the official cash rate dropping at least 2% this year.
The underperforming economy has been pointed out as a major factor in the rate reduction. It is expected that rate cuts as early as April will help boost the housing market.
Read more about this on the Adviser website.