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Turning Hawkish: The NAB says the RBA will hike rates 4 times over the next 2 years
The National Australia Bank (NAB) has done a complete about-face when it comes the outlook for Australian interest rates, forecasting that the RBA will now hike rates four times before the end of 2019. Here’s why: Stronger employment, GDP and investment data have seen us revise our forecasts lower for unemployment, and slightly increase our forecasts for GDP growth and inflation. GDP growth will continue to build in late 2017, as LNG exports continue to surge and government spending remains strong. We still expect growth momentum to ease somewhat through 2018 and 2019 to around 2.5% — which is in line with ... (full story)