HSBC expects an RBA rate hike in Q2 of 2015 (refining call from Q1 of 2015)

Earlier in the week I had this: When will the next RBA interest rate move happen? 21 bank economists predict (Goldman Sachs might surprise you) which includes the forecast from HSBC (HSBC H1 2015).

More from Paul Bloxham (HSBC’s chief economist) in a client note:

• “The persistently high AUD is slowing the pace of rebalancing and weakening Australian growth, with next week’s GDP print expected to show only weak growth in Q2.
• However, very low interest rates are supporting a housing price boom, leaving the RBA with little appetite to cut its cash rate further
• We expect the RBA to be on hold and, given the drag from a persistently high AUD, we now expect the next rate rise won’t occur until Q2 2015 (previously Q1 2015).”