Interest rate remains the same with 2.5 basis points. Economists believe that there is no interest rate cut until the year ends. The forecasts are, predicted on a constant exchange rate. But we cannot predict the economy because sometimes it is swinging. But there will be forecasts that there will be a possible cut next year. Will it be possible?
Westpac’s Chief Economist, Bill Evans, after the RBA’s meeting, he sees a possible two more cuts in 2014. According to Bill Evans, the stubbornly high Australian dollar, and a weaker than expected housing led recovery. If the housing market condition strengthens, it associated boost to wealth. Business and consumer confidence should strengthen to sustain the economy into 2014. If it will happen, interest rate may cut and possibly it will drive the housing market to boost.