Blackrock: Get set for one, maybe two rate cuts this year

At a media briefing in Sydney on Friday, Steve Miller, the Head of Fixed Income at Blackrock says the strength of Australia’s economy has taken him by surprise. In early 2015 Miller was quoted saying that he was alarmed by the declining terms of trade and the outlook outside of mining was “abysmal.” However, Miller is highly sceptical the strength can continue given two key growth drivers: residential construction and a strong housing turnover are both likely to slow. Miller says that the RBA will be forced to cut rates “Probably once, maybe twice” in the second half of 2016. Miller also tips the AUD to decline into the 60-65c range this year.