Foghorn: RBA to hold next week

Advertisement

Via Terry Mccrann, RBA fogorn:

First the big points. The overall inflation numbers were low and unsurprising. They didn’t “demand” another interest rate cut from the Reserve Bank and the RBA will duly leave its rate unchanged at Tuesday’s meeting.

We’ve had two cuts in successive months and the banks have passed on most of the 50-point total. A third cut in a third successive month would “ring alarm bells”. It would also do bugger all — except trigger a bank brawl.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
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.