Deutsche Bank Breaks Ranks to Call 2015 RBA Rate Cut on Jobless

Australia’s central bank will reduce its key interest rate next year as unemployment rises, Deutsche Bank AG said, breaking ranks with its major counterparts.

Policy makers will lower the cash rate by a quarter percentage point in the second quarter and another quarter point late in the third or early in the fourth quarter to 2 percent, Chief Economist Adam Boyton said in a research report. His view is in line with money markets that are pricing in an 80 percent chance the Reserve Bank of Australia will cut rates.