RBA’s Battellino Criticizes Market Pricing
- Says market pricing of rate cuts based on pessimistic assessment
- He’s optimistic weakness in US/Europe won’t be passed to Australia
- RBA open on policy until picture clearer
- Recent Chinese date resilient
- Australia Q2 household spending surprisingly resilient
- Softening employment could indicate slower econ
- But other measures have a stronger feel
- More data needed
Battellino has always been a bit of a hawk and an optimist, but he’s usually ahead of the curve.

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He may have been ahead of the curve when things went well but he (like everyone at the RBA) think all Australians work in Port Headland. Could you imagine any Central Banker in any other country where Real Estate has drop 25-40% in value not thinking it will make any problems for the economy. The RBA spend too much time being taken to lunch by Mining Companies. They have lost their way