A prudent Reserve Bank would waitI am venturing 50 units on no change at $3.
The monthly official interest game is upon us. And those bank economists who make a living selling their snake-oil opinions think the Reserve Bank board will cut the official rate by 0.25 percentage points to 2%.Well the market, one those bank economists tend to make, tends to agree with them. Here's The Owl's interest rate indicator:
Some how it does not seem right to me. Perhaps an interest rate cut will be necessary but if I was a Reserve Bank board member I would wait see what the government did in its budget before moving.I'll be having a small wager on there being no change tomorrow.
Monday, May 4, 2015
A note from my Politicalowl blog: