Australia: One of Australia’s largest banks is no longer feeling as optimistic about the economy as it was before.
But it now expects the Reserve Bank (RBA) will not be begin its gradual rate-hiking cycle until at least mid-2019, half a year later than its previous forecast.
“The change reflects the fact there is no sign yet of stronger wages growth and unemployment has been stuck around 5.5 per cent for the best part of a year,” NAB’s chief economist Alan Oster said.
Even though NAB has lowered its expectations on the timing of the next rate hike, the bank still expects the economy to “strengthen, leading to a declining unemployment rate”.
