NAB aban­dons call for an in­ter­est rate hike

China Daily (Canada) - - BUSINESS -

The Na­tional Aus­tralia Bank (NAB) has be­come the lat­est to aban­don their call for an in­crease in the coun­try’s in­ter­est rate next year, cit­ing in­fla­tion pres­sure and de­clin­ing prop­erty val­ues. “We have de­layed our ex­pec­ta­tion for the first Re­serve Bank of Aus­tralia in­crease in the cash rate to the sec­ond half of 2020,” NAB Chief Econ­o­mist Alan Oster said on Wednes­day. The Re­serve Bank of Aus­tralia has held the cash rate at 1.5 per­cent since Au­gust 2016, and has not made an in­crease since 2010. While Aus­tralia’s econ­omy has be­haved much as the Na­tional Aus­tralia Bank pre­dicted dur­ing the year, per­sis­tent weak­ness in wage and in­fla­tion­ary pres­sures and steeper de­clines in house prices in the ma­jor cities caused bank an­a­lysts to change their time frame.

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