FXStreet (Bali) – NAB Economics Team see the RBA keeping interest rates on hold, with the next move to up – but not till late 2016.
Key Quotes
‘We have fine tuned but not fundamentally changed our forecasts– 2014/15 2.4% (was 2.3%), 2015/16 2.6% (was 2.9%) and 3.0% (unchanged) in 2016/17.”
“The domestic economy is struggling to offset the impact of sharply lower mining investment – as again highlighted in the Q1 National accounts.’
‘Subsequently some recent data- such as the Nab Survey – has improved, but capex expectations in the non mining sector have weakened, business are reluctant to employ and consumers remain cautious.”
“With future domestic demand still weak, unemployment is expected to rise a touch to around 6.4% by end 2015 and remain relatively for some time.”
“Given our forecasts, we see the RBA keeping interest rates on hold, with the next move to up – but not till late 2016.”
(Market News Provided by FXstreet)