The Reserve Bank of Australia used its new Statement on Monetary Policy to suggest that it hasn’t got much appetite for cutting interest rates below 1.5%, although its own inflation forecasts suggest it might have to. We suspect that the RBA’s hand will be forced by underlying inflation staying lower for longer than it expects, resulting in rates falling to 1.0% next year.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.