117 - Compare the market

The market has the cash rate in Australia at 3.6% by year's end, up from the current 0.85%. This would be the sharpest tightening in three decades. RBA Governor Lowe thinks this is unlikely but concedes the market has had a better record than the bank at forecasting rates. So who is right? And can the economy handle it? Plus, iron ore plummets and NSW takes on stamp duty.