"It was widely expected that the RBA would cut the cash rate to 3.6% at today’s monetary policy meeting; implied market pricing put the odds near 100%.
BDO Economics Partner Anders Magnusson says the RBA’s decision to keep rates unchanged will impact economic growth.
Harry Murphy Cruise, head of Economic Research and Global Trade for Oxford Economics Australia, says he reckons the RBA should have cut rates today.
AMP’s Diana Mousina has just spoken to my colleague and presenter of ABC’s The Business, Kirsten Aiken.
Mousina: I think that the decision by the Reserve Bank was the incorrect decision and fundamentally it seems like it was down to the Reserve Bank not putting as much focus or attention as we thought that they might have on the monthly inflation indicator.
As Munger and Buffett used to say, show me an organisation who has an economist as an employee and I’ll show you a business with one too many employees.
“The only function of economic forecasting is to make astrology look respectable.” — Ezra Solomon, professor of finance, Stanford University
Still shocked at
"It was widely expected that the RBA would cut the cash rate to 3.6% at today’s monetary policy meeting; implied market pricing put the odds near 100%.
https://www.asx.com.au/markets/trade-our-derivatives-market/futures-market/rba-rate-tracker
They were nearly at appear to be a few days ago 100% certain rates were going to drop
Also seeing a lot of unhappy economists…
https://www.abc.net.au/news/2025-07-08/asx-markets-business-live-news-rba-july-8/105503774
As Munger and Buffett used to say, show me an organisation who has an economist as an employee and I’ll show you a business with one too many employees.