Dr Brendan Rynne, KPMG Chief Economist, responds to RBA economic forecast Following detailed analysis of the Victoria stage 4 lockdown, KPMG has reviewed its central case scenario for the outlook…
The RBA was obliged to cut rates to 0.25%. It is right that monetary policy should be working in a co-ordinated manner with the government’s fiscal stimulus packages.
Last month it was a 50-50 call on whether the RBA would reduce the cash rate. This month it was a lot clearer – rates were rightly cut by 0.25 percent today and there will probably be another 0.25 percent cut next month.
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
