McCrann piece begins by referring to JP Morgan yesterday forecasts four Reserve Bank of Australia rate cuts to come
JP Morgan forecast the RBA to cut rates 4 times by mid 2020
Mc Crann is not convinced on the 4 cuts call:
- The absolutely basic thing to understand is that next week's cut is the only cut the RBA has locked in.
- it might broadly think it probably will deliver a second cut
McCrann says the election result was a fundamental 'game-changer'
- Now we are not going to get the hit on negative gearing.
- We are not going to get the hit on franking refunds.
- We are not going to get the tax hit on capital gains
- All those have suddenly become 'negative positives' to the economy.
Plus
- we have a series of 'positive positives'.
- These include APRA's easing of the borrowing rules
- mortgage deposit help from Canberra for first-home buyers
- Then add the RBA - and bank - rate cut.
- This all adds up to one huge - even 'uge - boost.
Full article is here, may be gated.
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McCrann makes a series of good points IMO.
