No more interest rate cuts
It is always a tough decision to change tack on key forecasts, but today I have absorbed the recent market and economic news and conclude that the RBA will not be cutting interest rates again in this cycle. The article which includes the reasons for the change of view is published on Business Spectator.
WHY RATES HAVE NO FURTHER TO FALL
The interest rate cutting cycle in Australia is over.
At least it appears to be, based not so much on hard local news, but more on an unambiguous up-turn in global economic and market conditions and the yet to be felt effects of earlier monetary policy easings from the Reserve Bank.
To that end, I think I was wrong.
The case for having the cash rate lower than the current 3 per cent is still robust, based on the low inflation environment, the high Australian dollar and a softer labour market. But all of that news has been around for a while and the Reserve Bank has shown it has other issues in its focus when setting interest rates.
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