There was a bit of fanfare earlier this week about WM saying that the RBA should not have made the last 50bps of cuts and that 3% was likely to prove the low in rates. Bob has the other side of that bet in size — tipping a possible 1.5% low for the policy rate.
“Interest rates will fall. But I don’t think it’s going to work that much.”…Professor Gregory predicted that Australia’s real income could fall by 15 per cent in the next few years and whatever government gained power would have to convince people to accept lower living standards.
“The investment boom is going to peak and I can’t see something filling the whole quickly,” he said.
My sympathies lie with Bob.