RBA Decision for August

Won't US Fed raising rate make carry trade in aud less lucrative specially given the outlook of Australian economy in light of commodity deflation worldwide.
Thus putting downward pressure on our dollar, Hence reducing the need for further rate cuts,
It will be interesting to see what happens to inflation here.

 

China is already wobbly, India is struggling to increase job growth especially after the big hype of 'Make in india' and is hit by inflation in food items.

I am wondering If the low oil price the new normal? if so then inflation monster can be kept under check and we can have the cheap credit for a lot longer than we think

 

@TheSackedWiggle:

That’s why you could see the US Fed intentionally or even unintentionally engineer a market crash this year.

In a way, it’s a bit of a win-win for the Fed.

If the Fed raises interest rates and the markets brush it off, the Fed can say, ‘See, that wasn’t so bad.’ They can then claim victory for their years of money printing and low interest rates.

If, on the other hand, markets crash, the Fed can say, ‘See, we didn’t do enough, the market needs us.’ Then it can print a whole stack of new cash to keep the market moving.​

It’s all a bit conspiratorial in a way. But there’s no doubt something will happen at the end of this year.

Hopefully it should be better for Australia.