Is the RBA two and through?

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So says Morgan Stanley:

We think the RBA will continue to express the view that fiscal policy will provide more effective easing from here, and look to that to provide the next tranche of stimulus (if needed).

We are not forecasting any additional cuts from the RBA from here,although with the economy unlikely to pick up significantly the market will continue to debate further rate cuts, the effective zero lower bound and any possible unconventional monetary policy measures.

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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.