Rates could be on hold for years so buy these excellent ASX dividend shares

According to the latest Westpac Banking Corp (ASX: WBC) Weekly economics report, the banking giant continues to forecast the cash rate staying on hold until at least the end of 2022. However, it could be much longer based on its estimates for unemployment and inflation.

Chief Economist Bill Evans said: “Markets will focus on the revised forecast for the path of the unemployment rate following the sharp improvement in the recent data. There is likely to be a downward recalibration in the RBA’s forecast path for the unemployment rate but the Bank also appears to have lowered its estimates of the full employment rate.”

“The net effect will be consistent policy guidance that it will still be some time – 2024 at the earliest…