Weekend Economist: Rates rationale

The Australian dollar has shown unusual resilience. With rate cuts now less likely, the currency could remain higher than some anticipated.

On March 17 Westpac revised its forecast for the Reserve Bank of Australia cash rate, eschewing any more rate cuts in the cycle and predicting that the next move will be up by the second half of 2015. I am marketing in Asia for the next 2 weeks and below I set out the executive summary of my marketing document. That summary captures our core views around Australia and the world economy and puts the revised rate view into context.

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