Tezza rings Feb cut bell

The Herald Sun’s Terry McCrann sees scope for easing given the low inflation outcome.

THE CPI inflation data has opened the door for the Reserve Bank to start the new year with an official interest rate cut in two weeks.

It is, though, a seriously uncertain question whether governor Glenn Stevens will step through that door. Or indeed, even more intriguingly, choose to let his board opt to do so instead.

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8 Responses to Tezza rings Feb cut bell

  1. On your Marx says:

    I think you have a far better understanding of why the RBA would act than McCrann

  2. On your Marx says:

    A fool and his company’s money is easily parted

  3. jonas says:

    it will be interesting to see whether you get your February cut call right Ricardo. global markets appear to be moving against you

    • Ricardo says:

      Nothing is certain just yet — not even my feb RBA call!

      But i think it a cut is going to be discussed at the meeting, and i do not think that they will talk about a hike.

  4. jonas says:

    yes i agree with you ricardo. i dont think anyone thinks they will be talking about a hike. but they might before the end of the year. long term interest rates appear to be climbing as some have predicted they would this year

    • Ricardo says:

      Not sure what you mean – the 6m trend is up, but the 1m trend is down.

      Here are levels and highs for the prior month:

      1y1y IRS is 2.94%, down from a high of 3.15%
      2y1y IRS is 3.30%, down from a high of 3.47%
      5y5y IRS is 4.48%, down from a high of 4.67%

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