Via the Australian Financial Review’s Alan Mitchell (bolding is mine):
- The Reserve Bank’s new economic forecasts suggest that interest rates still are not low enough and that the official cash rate will be cut again in the coming months
- The forecasts … effectively assume that the RBA’s official cash rate will be cut another quarter of a percentage point to 2 per cent in the months ahead
- While the assumption of a further cut in the official cash rate merely reflects the interest rate movements priced in by the financial market and commits the RBA to nothing, it is also a concession to reality
