Interest rates in Australia are likely to decline to 1.5% this year: Capital Economics

Quotes from Capital Economics:

- Unsurprisingly, the Australian dollar rose after RBA decided on Tuesday not to follow February's cut with another in March, leaving rates at 2.25%. 

- It seems likely that the RBA was concerned that back-to-back cuts would stoke the housing market. But it left the door wide open for more rate cuts in the future, stating that "further easing of policy may be appropriate over the period ahead". 

- And the latest economic news supports our view that slower growth and lower inflation will leave it with little choice but to cut rates further. In our view, interest rates are likely to decline to 1.5% this year.