Please click on the link below to view Shane Oliver's view on Australian interest rates.
Key points raised are:
- The RBA has left interest rates on hold for 21 months.
- A rate raise is now unlikely until 2020 as
- growth is likely to remain weaker than the RBA expects
- wages growth and inflation are likely to remain low for longer
- bank lending standards are tightening further and
- housing prices in Sydney and Melbourne are falling with more downside ahead.
- For investors
- bank deposits will continue to offer poor returns
- Australian bonds offer better returns relative to global bonds
- Be wary of the Australian dollar