Credit Suisse: market overestimates the potential growth rates RBA

Australian dollar last nine months, was among the leaders of growth among the major world currencies, but, according to analysts Credit Suisse, a triumph for the bulls will soon be left in the past. The events of recent days signal a weakening in the ranks of the positive mood of investors, which could be further developed, and the bank is advised to pay attention to the fact that market participants remain very optimistic set of expectations about the prospects of rates in Australia. Indeed, recent statements by the representatives of RBA looked quite positive for the bulls to Aoussa but as the growing concern among investors about the situation in China and the world economy as a whole, the prospects of monetary policy are likely to be subject to adjustment. The index of expectations, Credit Suisse signals that market participants expect the most rapid rate increases in Australia since 1994, and those expectations are overly optimistic: it is assumed that the rate will increase to 1.61% during the year. The Bank expects that in the near future, investors will be forced to revise their forecasts, which will have negative consequences for the Australian currency.