Reserve Bank of Australia board member John Edwards has warned the government against deep spending cuts or large tax rises because of the economy’s fragility (link, gated)
Edwards was interviewed by the Australian Financial Review
Edwards highlighted that economic growth had slowed to “below trend”, normally considered to be just above 3 per cent …
Also that employment was “not very strong” …
“The stance of fiscal policy is always a consideration for monetary policy,”
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OIS pricing is at 77% probability for a 25 basis point cut at the RBA’s August 6 meeting. Ahead of all the central banks this week and the NFP Friday, and also a speech from RBA governor Stevens tomorrow, I think a 77% probability is pretty high.
I posted AUD orders for today earlier, here.
