Famous economist Saul Eslake disagrees with many industry commentators who are expecting a rate cut from the Reserve Bank of Australia next week.
Eslake said his view remains the same, saying the RBA “isn't going to do anything until the first half of 2016 when they will probably put rates up”.
The Bank of America expert added that the combination of lower oil prices were combining with a weaker Australian dollar was helping to stimulate the economy, amid low interest rates today.
“We actually do now have a housing boom on our hands," Eslake said.
Moreover, he is expecting a record of more than 200,000 housing starts in 2015.