Why you should ignore Goldman on Aussie interest rates

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Via Goldman:

“We continue to lean towards the RBA reducing the cash rate to 0.5 per cent in the near term before remaining on hold over the next few years, with the pick up in growth and house prices easing pressure to deliver additional stimulus.”

In turn, we don’t expect the RBA to pursue QE and other unconventional measures in 2020.

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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.