The latest long range forcast from Westpac Economics is for Australian financial markets, the relative stability of 2014 will transform into considerable volatility from 2015. The AUD and interest rates will be on the rise (fixed rates lead RBA rates by around six months), and equity and property markets will be buoyed by confidence in the global developments we anticipate during that period. The AUD will once again “flirt” with parity. The year 2016 will continue to see growth and asset markets supported by global developments. Reversals, firstly in asset markets and then in aggregate demand, will emerge through 2017 and 2018.
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February 2021
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