Why the RBA will follow the Fed’s election playbook
Just as the Federal Reserve did before the US vote, the Reserve Bank appears set to ease interest rates in a move that will support its political masters heading into a problematic poll.
Two of the biggest events this week were the tantalising prospect of a first rate cut in February – followed by potentially many more – coupled with the banking regulator’s bizarre decision to phase out the hybrid market by 2032.
Before the Reserve Bank of Australia’s board caucus on Tuesday, this columnist had expressed the view that our monetary policy mandarins would probably consider lowering their target cash rate in February and/or at subsequent meetings.
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Christopher Joye is a portfolio manager with Coolabah Capital, which invests in securities, including those discussed in his column. Connect with Christopher on Twitter.
