Wrongfully wrong economists call end to RBA easing

Friday, 7 February 2020

Via the AFR:

“For now better momentum has at least been demonstrated,” JP Morgan’s Ben Jarman said, “and this is sympathetic to the RBA’s characterisation of a gentle turning point, even if a new risk has arisen that could buffet the data significantly.”

Goldman Sachs chief economist Andrew Boak went further, suggesting the RBA would no longer make any further interest rate cuts this year following its decision to keep the official rate at its record low 0.75 per cent on Tuesday.

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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.