And then there were three: Goldman Sachs Group Inc., JPMorgan Chase & Co. and Macquarie Group Ltd. are sticking to bets the Reserve Bank of Australia will resume lowering interest rates as others ditch their rate-cut calls.
Australian consumer confidence fell to its lowest level since August 2011, prior to the central bank’s most recent easing cycle, after the government’s budget flagged spending cuts and a new tax on high-income earners.
Bill Evans, Westpac Banking Corp.’s chief economist and the first to call the Reserve Bank of Australia’s latest easing cycle, has dropped his prediction of further interest-rate cuts as the labor market strengthens.
Three of Australia’s foremost market economists -- with a century of experience between them -- are defying their peers and traders’ bets by predicting the central bank will be forced to resume cutting interest rates.
JPMorgan Chase & Co. and Westpac Banking Corp. pushed back their forecasts for when Australia’s central bank will lower interest rates, with the strongest inflation in two years offsetting rising joblessness.
AMP Capital Australian Corporate Bond Fund, which outperformed its peers over the past decade, prefers U.S. and European banks to the South Pacific nation’s lenders on improving economic prospects in those two regions.