The last of Australia’s big 4 banks has abandoned a call for the RBA to cut rates later this year.
A boost to business confidence, a stronger than expected growth in the first quarter, and a lower peak in unemployment, moved NAB to revise its interest rate forecast, dropping its call for a rate cut in November.
The market has long moved past the idea of rate cuts in Australia and the OIS market is pricing in a 50/50 chance of a rate hike by this time next year.
The near-term risk for AUD is from harsh budget measures from the Abbott government.
