My take on the RBA: The RBA holds on to an on hold position The penny still has not dropped at the RBA. A weaker than expected world economy, a commodity price dump and persistently soft domestic demand are an economic problem for Australia but the RBA is reckoning that monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. I don't agree, but let's have a look at how the RBA is getting things wrong. Click on the link for all of the details: (VIEW LINK)
Comments
David Scutt
Like your take, Stephen. Very similar to mine. The statement basically lists a whole list of reasons why they should be easing, and even how they could lower the AUD given divergent monetary policy settings, yet in the end they keep rates at levels that fostering spluttering economic performance.
David Scutt
Like your take, Stephen. Very similar to mine. The statement basically lists a whole array of reasons why they should be easing, and even how they could lower the AUD given divergent monetary policy settings, yet in the end they keep rates at levels that fostering spluttering economic performance.
James Marlay
More of the conversations I am having with equity markets investors are leaning towards a rate cut if not two in CY15. AGM season (i.e. November) has seen a staggering number of profit warnings and downgrades - which would seem to be a pretty good indicator. This has been across a broad spectrum of industries as well - not just isolated to resources/mining services.