May
08
RBA’s New Head Seen Facing Risk of Rate Cuts to 1% by JPMorgan
By-
Lowe in 2012 put unconventional policy threshold at around 1%
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Median forecast of economists is for cut to 1.5% in August
Philip Lowe may have only a few months to settle in as Australian central bank chief before he has to consider cutting the cash rate to levels he’s previously said have questionable benefits.
The need for easing looked more urgent Friday after the Reserve Bank of Australia conceded core inflation will probably miss the bottom of its 2 percent to 3 percent target this year and may undershoot into the middle of 2018. While the bank gave no guidance on rates, swaps traders pushed to about 70 percent odds that Governor Glenn Stevens will lower the benchmark to 1.5 percent before his term ends Sept. 17. JPMorgan Chase & Co. said Lowe may have to reduce rates to 1 percent or less…
RBA’s New Head Seen Facing Risk of Rate Cuts to 1% by JPMorgan
