Over the past five years, inflation has been slowing in Australia despite relatively strong employment and GDP. Many forecasters had expected a falling Australian dollar to lead to higher inflation; however, this has not been the case. In our view, the reason for this is that the real driver of... Show More
The RBA is hostage to offshore central bank policies and the only way out is to ditch its rigid free market beliefs that limit its activity to setting rates. At some point the RBA will need to realise that cutting cash rates is a weak tool in a world where... Show More
BTIM expect domestic interest rates to fall by 50 basis points in the first half of CY15. Vimal Gor, Head of Income and Fixed Interest at BTIM, has put a spotlight on RBA jawboning. The RBA is trying to talk the Aussie dollar down to stimulate growth. Ultimately, their view... Show More