BlackRock bearish on domestic rates

Scott Thiel from BlackRock says they remain short the Australian dollar with the potential of three more rate cuts from the RBA. “Our view is that the RBA will make at least two more 25-basis-point cuts to the official cash rate before the end of 2015, with the possibility of a third 25-basis-point cut before this cutting cycle is over.” On US rates Thiel remains confident the US Fed will move to start raising rates this year and looking out further he believes markets are too bearish. "The market is currently pricing for US interest rates to eventually normalise to 2.5 per cent, but we expect they will hit at least 3 per cent." Read the full article (paywall) (VIEW LINK)