The RBA’s uncomfortable cut should worry investors
What really matters to investors is how many rate cuts the RBA delivers in this easing cycle. This low-conviction cut shouldn’t get the market’s hopes up.
Investors shouldn’t miss the real and obvious sense of discomfort emanating from the Reserve Bank of Australia on Tuesday, as governor Michele Bullock finally delivered her widely anticipated interest rate cut.
The heavy qualifications placed around the move, the caution Bullock repeatedly expressed, the distinct lack of conviction in the bank’s view of where the economy goes from here, all speak to the only rate question that actually matters for markets: how many more cuts can we really expect?
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
