Published: February 06, 2019
For now the chances of a cut are 50-50, but if incomes don’t grow and households don’t spend, those odds could swing sharply
The news on the economy is starting to get much gloomier. The latest retail spending data and words from the governor of the Reserve Bank are sounding the warning siren that the economy is in danger of slowing as households look to have reacted to the ongoing lack of improvement in real incomes by closing their wallets.
After well over a year of suggesting that the next interest rate move will likely be an increase, Philip Lowe, in a speech on Wednesday to the National Press Club in Sydney, admitted that now the odds of a cut are around the same as that of an increase.
Continue reading...from The Guardian http://bit.ly/2Gega6z
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