22/09/2024 11:41 am
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What's next for the RBA?
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How do you think the big 50 basis point rate cut from the US Federal Reserve will impact the Reserve Bank of Australia's next steps? Sean Aylmer from the Fear & Greed podcast thinks the local job market is probably too strong for the RBA to lower interest rates anytime soon. Meanwhile, Westpac Chief Economist Luci Ellis says the Fed's cut doesn’t really affect the RBA at all. She believes both banks can do their own thing. What’s your take on that?
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22/09/2024 11:45 am
The Federal Reserve is off to a fast start but plans to slow down soon.
Here are two key points:
- This won’t affect the RBA; both can move at their own pace.
- We’re not sure where the finish line is, and neither does the Fed. There are solid reasons to believe that the “neutral” policy rate is actually higher now than it was during the time between the GFC and the pandemic.
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