HSBC changes growth and rate forecast

29 June 2015

Paul Bloxham, HSBC’s chief economist in Australia has cut his forecast for Australian growth by 0.2% to 2.4% in 2015. The downgrade was driven by lack of business investment in Australia and lower Chinese economic growth that will affect the demand for raw materials supplied by Australia. As a consequence, he now sees the RBA keeping cash rates on hold for all of 2016, removing his forecasts for rate hikes in the second-half of next year.