Weekly auction data – Interest rates could fall further

Editorial director of Switzer
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A raft of softer data on the local and global economies has seen a big shift in the interest rate outlook over the past few weeks.

Economists are now forecasting one or two more cuts over the next 12 months, according to a Credit Suisse report, which monitors market expectations of interest rates. That report says the market implied interest rate at the end of the next year is 2.43% or 57 basis points lower than where rates are now.

This follows a slight softening in the unemployment rate to 5.6% and a steady-as-she-goes inflation rate of 2.5% for the year to March quarter, compared to 2.2% for the year to December quarter.

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