Interest rate outllok

[johk]

Hi,
A few months back it seemed the generally consensus was that we would have another rate cut in the near future.
I was wondering if that is still what you reckon or has the market outlook changed?

Thanks,
johk

 

[mattnz]

Inflation is below the 2-3% range that RBA is mandated to maintain in the mid-long term. They have plenty of room to move if / when international and / or local events require it.

 

[luckyone]

I don't think they'll move yet. Even though the retail sector could really use the cut, I don't think they'll do it just in case another crisis comes in the world and they need it up their sleeve for that.

 

[Graemsay]

Mervyn King, the governor of the Bank of England, reckons that we're halfway through the financial crisis. I've got a BBC news programme in the background, and a politician is talking about a decade of austerity to get the national debt and deficit down.

The Eurozone has various worsening debt crises rolling along. The US seems to be growing, albeit very slowly, with the risk of dipping back into recession. As for China, the mood music isn't good there, but it's hard to know for sure.

My guess is that the RBA is likely to keep interest rates low for the next few years, and wouldn't be surprised if there are cuts. But these are likely to be accompanied by a slowing economy, which will be distinctly less fun.