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...

Stephen Koukoulas

Market Economics Pty Ltd

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)


Stephen Koukoulas
Chief Economist
Market Economics Pty Ltd

Stephen Koukoulas has a rare and specialised professional experience over more than 25 years as an economist in government, as Global Head of economic and market research, a Chief Economist for two major banks and as economic advisor to the Prime...

Expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment