Australia & New Zealand Economics

Australia & New Zealand Economics Weekly

7 December, 2018

RBA not ready to cut

The financial markets are now pricing in a small chance of a rate cut by the RBA next year following the release of weak GDP data this week. But while we expect GDP growth to slow further next year, we think that the improvement in the labour market since the RBA’s last cut in 2016 has raised the hurdle for additional easing substantially. Rather than lowering rates, we think that the RBA will simply wait longer before hiking rates than most anticipate.

Access this publication and more, take our free trial subscription today.

Free Trial

Already a subscriber? Simply log in to view this article.

Save to Library

New Book

Making a Success of Brexit
and Reforming the EU

by Roger Bootle

"Outstanding - engaging - absorbing"
Daily Telegraph

Buy now on Amazon
We use cookies to ensure you get the best experience on our website. Read our Cookie Policy for more information.