Hot on the heels of ANZ’s chief economist leaving the bank in early March, the bank has wasted little time in ditching its call for two more interest rate cuts from the Reserve Bank. The original call was made on 1 October 2015 by the then chief economist Warren Hogan as Australia’s economy was looking shaky and unemployment was moving higher.
The bank now says that the economy is on a firmer footing and the risks around the global outlook are dissipating making further rate cuts unlikely. The bank now says the RBA will keep rates steady for 2016 and most likely 2017 as well.