NAB abandons call for an interest rate hike
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.