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The outlook for the Australian economy


Simon Stevenson

Simon Stevenson

Deputy Head of Multi-Asset

If you believe current market pricing, the Australian economy is headed for a significant period of distress. Cash rate expectations, priced into the market, suggest the official cash rate will fall to 2.5% within the next year, below the 3% low it reached during the GFC.  What is more extraordinary, is that if this is achieved it would see the cash rate lower than in any time since 1959. This market pricing also concurs with the views of offshore investors with many seeing the Australian economy as an accident waiting to happen.

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