Martin Place is standing in full view with its pants down

John Kehoe is close to the RBA and writes just now:

The Reserve Bank of Australia may be forced into an emergency monetary policy easing after central banks in the United States and New Zealand slashed interest rates to almost zero overnight.

…The RBA may soon resort to an unscheduled rate cut and unconventional stimulus measures according to market economists and investors.

That does not sound like it is based upon any inside information. Hopefully it is right.

It must have known about the Fed’s co-ordinated action. And if it didn’t why didn’t it? The RBNZ obviously did.

Martin Place is standing in full view with its pants down.

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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.