Forum Topics RBA on HOLD!
Strawman
Added 8 months ago

The market misread the tea leaves re today's rate decision..

Obviously, it changes everything and I'll need to go update all my models and adjust my portfolio.

Oh wait, no I won't, because 25bp up, down or sideways in a given month is next to meaningless. Phew!

;)

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Solvetheriddle
Added 8 months ago

Yes the end of life as we know it, oh wait that's the $3m super tax. next! lol

17
edgescape
Added 8 months ago

Kind of funny when probably the decision is based on unemployment rate which they were expecting to be higher.

So it means that rate stays the same because there are too many still working?

And if they cut then the employed will go on a spending spree stoking inflation?

I don't know but maybe RBA should be looking at a different metric or approach.

9
Clio
Added 8 months ago

Reported this morning that M. Bullock said they simply don't trust the monthly ABS figures. Also, the calculation of trimmed mean is different for monthly than quarterly, apparently.

Long story short, they want to wait for the quarterly figures due June 30, for reassurance the trend is in the right direction, before they cut again.

The take-away seems to be that if June quarter trimmed mean comes in at or below 2.6, they will cut in August.

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