Published: May 06, 2019
We have a weak economy overall, but that is not new
For the first time in more than two years there is a realistic chance of the Reserve Bank cutting interest rates. Such a move would be very politically charged as it would make it abundantly clear that the economy is in danger of grinding to a halt.
Right now, the Reserve Bank is expected to cut the cash rate sometime in the next two months. The likelihood is around 40% that it will cut it to 1.25%on Tuesday afternoon, but the market has fully priced in the cut to occur by July. It also expects another cut to a truly unbelievable 1.0% to happen by the start of next year:
Continue reading...from The Guardian http://bit.ly/2LrV206
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