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Late yesterday, Professor Warwick McKibbin sympathised with an RBA rate cut at the AFR:
Former Reserve Bank of Australia board member Warwick McKibbin, one of the nation’s highest profile monetary policy hawks, says he understands why the central bank may be forced to deliver an official cash rate cut ahead Tuesday’s federal budget.
…”The inflation figures were a bit concerning,” Professor McKibbin said in a budget-eve interview with The Australian Financial Review. “If they did cut, I wouldn’t criticise and I understand why they might. If prices are falling then the real interest rate is rising.
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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.
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