What’s going to happen to interest rates? Many economists say we’re in for a few more rate cuts, however in this video Paul Bloxham from HSBC reveals why he thinks the Reserve Bank won’t cut the cash rate any further this year, and why it could go higher.
Sure this is a “non-consensus” call, but I respect Bloxham’s views.
It’s good to finally see a response to falling interest rates with evidence from a number of research houses that house prices are on the move again at last.
I recognize that calling the bottom of the interest rate cycle would imply that our economy is improving despite a patchy global economy. But I’m not sure that at present we’ve hit the bottom of the cycle yet or that rates are low enough and confidence is strong enough for a sustained recovery in retail, construction, house prices or other interest rate sensitive sectors.
Anyway…let’s watch what the expert has to say.