Paralysed RBA to cut, cut, cut

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Goldman’s Andrew Boak has been more right than everyone so far.

In her post-meeting press conference RBA Governor Bullock noted that today’s decision to keep the policy rate unchanged at 4.10% was a consensus decision and that the Board did not explicitly consider a rate cut at the meeting.

Importantly, Governor Bullock did not repeat February’s guidance that financial markets are pricing too much easing this year – despite financial markets now pricing significantly more easing later this year (Exhibit 1).

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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.