JP Morgan’s Sally Auld tracks MB into the all-in position of four rate cuts over the next year:
“A number of developments in recent months suggest the RBA is unlikely to achieve desired macro-economic outcomes with only 50 basis points of easing. In the next year the RBA cash rate is likely to reach a level close to the effective lower bound, marking the end of a decade-long convergence trade for AUD versus Developed Markets rate spreads…and remain their for some time.”
“[a] shift lower in the Phillips Curve means that lower rates of unemployment are now necessary to deliver target consistent inflation outcomes”.
