RBA to cut interest rates twice in 2016 - down to 1.5%!

If the US keeps their rates on hold and the Aussie dollar keeps appreciating it makes a rate cut look even more likely. I don't think the RBA is that keen on lowering them though.

 

I worked for Bill a few years ago [OMG, just did the maths, 15 years ago! I'm getting old!] in the Faculty of Economics and Commerce - I was working internal IT. The guy is an absolute freak who gets by on about 4 hours sleep a night. He was something of an inspiration to work for - as well as being a bit intimidating! When I started working for him, he had not long sold his website (cyclingnews) for about $3M. Something he just knocked up in his spare time.

I have a lot of respect for him. CofFEE was starting to ramp up and was producing some interesting research.

Cheers,
Inertia.

 

I've never had the pleasure of meeting the man. I first came across him when he was a guest speaker on 4 Corners earlier this year regarding job agencies. It was refreshing to see an Economist who actually thought outside of the square. Most economists tend to repeat the same old dogmatic Chicagoan theories (made famous by Milton Friedman) , which never stack up in reality. I typed him into google after watching 4 corners and his blog came up- I've been a regular reader of it ever since.

 

Thinking about interest rates in 5 years or so...
The RBA will only raise it if inflation is persistently above 3%.
At current levels of household debt, it might only take a few small hikes to control inflation.

 

Interesting blog, 2FAST4U.

If his view is anything to go by, and if the central banks are now thinking along the same lines, then IR changes will become less relevant as regulatory changes overthrow them ala APRA restrictions