Westpac has stunned the markets by predicting that rates will not rise until 2021. Bill Evans from Westpac has identified noted a few things that lead to this prediction.

• Tightening in financial conditions across the nation caused by APRA lending restrictions. These act as a quasi-rate rise because they restrict people from being able to borrow.
• The weakening in the Sydney and Melbourne property markets.
• The slow wage growth across Australia

The RBA stated that while markets in Sydney and Melbourne were slow, Brisbane still looked strong and they would avoid a rate reduction unless unavoidable.