Melbourne Cup day rate cut undesirable and unlikely

Jessica Irvine makes an impassioned case for a Melbourne Cup day rate cut from the RBA (Giddy up Reserve Bank and give us an interest rate cut), but I don’t think the RBA Board will provide one. Data in recent weeks, including stronger CPI growth than expected and an incipient recovery in building approvals, suggest the economy will be back to trend rates of growth over the next year or so. Also, with the emerging recovery in the US and strong recent jobs data, prospects for the global economy appear much better than even a month ago.

Chris Joye at Aussie Macro Moments and the AFR has excellent coverage of the ongoing debate over a November rate cut – e.g.

November rate cut prospects fading

Westpac’s Bill Evans and 19 other economists: RBA to cut *again* in November! Really…

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