(14 January 2013 – Australia) National Australia Bank (NAB) has joined ANZ in slashing its interest rate forecasts for the year, with economists from the bank now tipping three more interest rate cuts this year.That would take the Reserve Bank of Australia (RBA)’s official cash rate from the current 3 percent down to 2.25 percent by the September quarter.
The bank’s data and business surveys are pointing to a weakening economy and it is tipping the unemployment rate will rise to about 5.75 percent by late this year.
In December, ANZ tipped the cash rate to be cut to 2 percent this year, said on Friday it was pushing back its first forecast rate cut for 2013 from February to March, amid improving financial market sentiment, strengthening commodity prices and some positivity in recent economic data.
Westpac forecasts the RBA to cut rates by 25 points for 2013 and Commonwealth Bank expects rates to remain level at 3 percent.