An Australian Financial Review report on the view of Goldman Sachs that:
- A severe drought from an intense El Nino weather pattern may drag Australia's growth below 2 per cent and force the Reserve Bank of Australia (RBA) to cut interest rates
Mike had the drop on this yesterday: Goldman Sachs add another RBA rate cut to their 2016 forecasts
Read Mike's post for more.
And, the Australian Financial Review piece appears ungated, more there too
Goldman Sachs expect the RBA to wield the knife, big time:
- "We continue to expect the RBA to ease interest rates by 25bps in November and then to reduce interest rates by 25bps in December."