Stott: More cuts needed to stimulate anaemic economy
Anecdotal evidence from visits to companies on the coal face of the economy indicates that recent rate cuts have failed to have the desired impact from the RBA. Chris Stott, Chief Investment Officer of Wilson Asset Management, believes soft demand from a cautious consumer will see the RBA cut rates again in 2015 to boost economic activity. "More interest rate cuts are needed and will come throughout the rest of 2015. Which could spur economic activity again and drive earnings growth amongst Australian industrial companies." Stott says in the US the expectations for a rate rise are continuing to be pushed further out which will likely see the dollar trade at current levels in the immediate term before ultimately moving lower when US rates do start to move higher. In this interview he also shares his views on the outlook for China and how this flows through to the resources sector.