Phil Ruthven, the founder and chairman of business information forecaster IBIS World and an economist, has told delegates at the FAST Business Excellence Conference in Palm Cove, Queensland, that Australian interest rates in Australia could double over the next six years.
Ruthven believes as the world economy fully recovers from the GFC, it would also re-establish its appetite for finance. He added that while international markets such as China and India were able to service their own needs, other countries in the developed world like Australia didn’t have such a culture for saving which could force rates up.
Ruthven suggests that interest rates could reach 12.5% in 2016, which is still significantly under the rates in the early 1990s.
He also predicted that Australia could experience its next recession in 2018 based on previous cycles and praised the Howard government for helping Australia avoid the worst of the global financial crisis which hit other countries far harder.
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