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.
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.
The Reserve Bank of Australia will lower its overnight cash rate target to a record low this year as Europe’s escalating debt crisis damages global growth, Westpac Banking Corp. chief economist Bill Evans predicted.
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.