Home Forex Trading Australia press on "Why the RBA will keep cutting rates" – ForexLive

Australia press on "Why the RBA will keep cutting rates" – ForexLive

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An opinion piece in the Australian Financial Review says that the need for low rates is not a temporary phenomenon, but rather a powerful long-term dynamic

It notes various factors for this, but this one is probably of most relevance for why the RBA is acting now after years of dithering:

  • The final dimension of this analysis is the RBA’s recognition that it has missed its inflation and employment targets for years. This means we are left with an emboldened institution that has high conviction it should do everything within its power to continue to reduce the cost of capital until it has confidence that its inflation, employment and prosperity triangle is standing strong and true. Right now, it lies in pieces on the ground.
The RBA Gov with Australia’s Treasurer

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