Three of Australia’s foremost market economists — with a century of experience between them — are defying their peers and traders’ bets by predicting the central bank will be forced to resume cutting interest rates.
Hours after the Reserve Bank of Australia signaled it was abandoning a two-year easing cycle, Westpac Banking Corp. (WBC) Chief Economist Bill Evans, National Australia Bank Ltd. (NAB)’s Alan Oster and Bank of America Merrill Lynch’s Saul Eslake were sticking to the view that rising unemployment and the end of a mining boom will drive the overnight cash-rate target lower.
