Banks: All ahead rate cut

Sanity has prevailed this afternoon among the adult economists of the Australian economy, despite the shrieks of a gallaping flerd of tattered plumed birdcows.

First up is Bill Evans of Westpac who is sensibly unchanged in his view that a rate cut is coming in November.

Below that, ANZ backs off to now call a December cut. And HSBC also still sees a cut before year end though it says it will be the last of the cycle, about which, it will be wrong.

Er 20121024 Bull a Usc Piq 32012

CPI Q3 2012

121024 Australian Inflation Jumps – RBA May Now Have Less Room to Move (1)

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.