Canada rings the bell for the RBA It seems it took the Bank of Canada rather than local economic news to see the Australian market embrace the prospect for...

Canada rings the bell for the RBA It seems it took the Bank of Canada rather than local economic news to see the Australian market embrace the prospect for further interest rate cuts from the RBA - starting in February. The BoC decided to cut its cash rate to 0.75 per cent despite its dominant trading partner - the United States - recording decent growth and fueling solid demand for Canadian exporters. The collapsing oil price and perception of a too high Canadian dollar forced the BoC's hand as it looked into 2015 for the risks to growth and inflation which were universally to the downside. The BoC reasoning for an interest rate cut looks to apply to Australia and our own RBA. Falling terms of trade, weak real economic growth, uncomfortably low inflation and a persistently high currency are all the issues confronting the Australian economy. 2015 looks like a crook year unless policy is relaxed. For the full article, click here: (VIEW LINK)