Westpac are delaying their forecast rate cuts by the Reserve Bank by three months from February and May next year until May and August next year.
Says:
- An extensive interview which the Reserve Bank Governor Glenn Stevens conducted with senior journalists Alan Mitchell and Michael Stutchbury from the Australian Financial Review indicates quite clearly that he is in no mood for a February rate cut.
- The Governor accepts the need for further stimulus in the Australian economy but he is focussed on providing that stimulus through a weaker Australian dollar rather than lower rates.
- Uncertainty around the residential property market is seen to be the primary constraint on using interest rates.
