Advertisement
Regular reader will know that Adam Carr is the contrarian indicator of choice these days and today he is signalling more rate cuts:
How is it that financial markets are so certain of another rate cut from the Reserve Bank? At the very least, the spike in business conditions, and especially business confidence, could mark a turning point in Australia’s economic debate — and cause a sizeable shift in market pricing for another cut.
As it stands, markets are priced for a further easing as early as the October meeting (55 per cent), rising to 83 per cent by February 2016 (according to 30-day futures market pricing).
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
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.
Advertisement