Australian Herald-Sun central bank watcher Terry McCrann is out with his latest. He says there is no chance of a rate cut in two weeks but the RBA could cut rates if it determines prior cuts and the fall in the Aussie haven’t done enough.
The key to understand the attitude of the RBA, is that it does see any threat of inflation, pretty much out through the back half of 2015. So it is fully prepared to deliver more stimulus to the economy, to get the highest possible rate of growth.
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The critical bigger point in this is that the RBA can assess conditions, respond to changing conditions – and change its collective mind, if necessary – very quickly. And implement that change flexibly and quickly with interest rates.
Firmly wait-and-see.
