JPMorgan, Westpac See RBA Cuts Delayed as Inflation Offsets Jobs
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JPMorgan Chase & Co. and Westpac Banking Corp. pushed back their forecasts for when Australia’s central bank will lower interest rates, with the strongest inflation in two years offsetting rising joblessness.
They join Bank of America Corp. and Royal Bank of Canada, which shifted their predictions in the past three months. The estimates for delayed easing come as reports paint a mixed picture of the economy’s transition to new growth sources amid the ebbing of a mining boom. Having priced in a 26 percent chance of a first-quarter rate cut after the weak jobs report on Jan. 16, swaps traders slashed the odds to 11 percent after Jan. 22 data showed inflation was accelerating.