I would suggest that the most prudent action from tomorrow’s Board meeting is for the RBA is to keep rates on hold.
Major drought conditions afflicting most parts of Eastern Australia and flooding in Queensland; and the substantial closure of the car manufacturing industry in South Australia and Victoria. How resilient are our states in facing up to such events?
Geopolitical risks are increasingly impacting the outlook of the global economy.
While the decision to cut the cash rate by 25bp to 0.75 percent was priced into the market as a near certainty, the factors influencing the outcome were certainly not straightforward.3
The RBA was right to keep rates on hold at 1 percent today and leave any further cuts till later in the year.
We forecast domestic annual GDP growth will rise to 1.9 percent in the second half of 2019 after bottoming out at 1.4 percent growth for the year ended 30 June 201
By cutting rates, the RBA is sending a signal to the market, to politicians and to the community at large, that the Australian economy is not firing on all cylinders