Having been stuck at rock bottom 1.5 per cent since August 2016, and a central bank banging on about getting it back up to ‘normal’, the Reserve Bank of Australia caved in this morning, joining the growing throng of authorities back-pedalling. Head of the RBA Philip Lowe said, ‘’today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will achieve more assured progress towards the inflation target’’. James Bullard of the St. Louis Federal Reserve said yesterday that a cut in the Fed Funds rate ‘’may be warranted soon’’ given the trade risks and weak US inflation.
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