Australian interest rate cuts back on!

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It will be no news to MB readers of course but rate cuts are suddenly back on. Although none of the happy economists that seems to hog the Australian media discussion is yet to admit it, global and local data and commodity prices are becoming more unfriendly to their optimistic projections.

For those of the bull trap persuasion it is far too early to crow but I will note that interest rate markets do appear to have topped and are forming a new trend down (or up you’re a bond guy):

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Markets are now pricing one rate cut in the year ahead, with more to come…

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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.