Domain hankers for days of rate cuts past

It’s RBA day and Domain is pining for times lost:

Increasing real interest rates and Victoria’s stage-four lockdown will force the Reserve Bank to re-examine policy settings and its forecasts for the national economy amid growing evidence the jobs market has deteriorated in the past fortnight.

The RBA board is expected to hold official interest rates at their record low of 0.25 per cent at its Tuesday meeting – the first since Victoria was forced to shut key parts of its economy and tight restrictions were imposed on its border with NSW.

But the unfolding economic disaster in Victoria could force the bank to consider a proposal floated by governor Philip Lowe late last month, when he said there was scope to move rates to just 0.1 per cent.

I guess when you’ve been at it so long and you run out of rope there’s not much else you can do but pretend.

The RBA, and it’s exhausted million dollar flop, Phil Lowe, have declared themselves out of ammunition and there is no more mortgage relief coming to households no matter how much Domain wishes for it.

David Llewellyn-Smith
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