NAB becomes another bank to delay RBA rate hike expectations. It now expects the first hike to happen in second half of 2020. It noted that “ages pressure remains weak and hence inflationary pressure has remained low.” And, core inflation would continue to “track below RBA’s target band” through all of 2019.
And, there would be a “moderation in growth back to potential of around 2.3 to 2.5%”. And, “falling house prices suggest a bigger impact on housing construction than previously incorporated and additional concerns about the consumer, though low rates and unemployment are important offsets.”
