Australian interest rates Featured Article

Does the RBA have the cojones to hold as it all falls apart?

Wednesday, 7 June 2017

Morgan Stanley thinks so:

RBA’s Rock and a Harder Place

After a big month in Australian macro, the RBA left the policy bias ‘on hold’, but noted weaker real income and consumption trends. We think policy tradeoffs have worsened, and expect the Bank to leave rates at 1.5% into 2019, despite our bottom of consensus 2017 GDP forecast of 1.2%.

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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.