From the FXWW Chatroom: Economists at Goldman Sachs have brought forward their forecast for the first hike in the Reserve Bank of Australia’s cash rate to November from February, citing the need for higher interest rates to correct the financial imbalances in the economy.
Economists Andrew Boak and Bill Zu now expect the RBA to raise the cash rate by 25 basis points in November, followed by hikes in May and November next year, and three subsequent hikes to take the cash rate to 3.0% by 2020. The cash rate is currently at 1.5%.
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