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In the view of Goldman Sachs’ Australia Chief Economist, the Reserve Bank of Australia (RBA) rate cut Is likely but the central bank will refrain from rolling out a quantitative easing (QE) program.

Key Quotes:

“Expect a  material pick-up in aggregate private demand, which will more than make up for a tapering off of public demand.

The recent turnaround in dwelling prices to help housing-related consumption growth rebound.

Moderate lift in mining investment.

RBA to cut another 25sps (take the cash rate to 0.5%).

Market talk of  QE will persist but it’s unlikely at least next year.”