Credit Suisse goes there: RBA going to slash rates

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More or less, via the AFR:

Australian households are overgeared and the Reserve Bank of Australia might have to cut interest rates up to three times to ward off a dramatic deleveraging event in the economy.

Credit Suisse strategist Damien Boey argues the output gap in the economy is widening at a time when households are past the “break-even” level of leverage.

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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.