RBA rate cuts – The Australian economy "goes to hell, it's really not"

A report on the RBA and Australia's latest economic outlook from Deloitte Access Economics. This via the Australian Financial Review ..

The RBA rate cuts in June and July are not due to the bank's concern over a sharp economic slowdown

But because the RBA wants to create more jobs, increase wage growth and realize now that the "speed limit" of the economy was higher than expected

• "The Reserve Bank could have made this decision at any time in recent years, but as it has decided to do it now, as the economy slows down, everyone badumes that the economy has to go to hell "It's really not."
• "Consumer and business confidence is falling because the RBA has not explained itself as well as it could have."

Then describes the "heaps of stimulus" in preparation:

• election result reduces political uncertainty
• tax reduction
• interest rate cuts
• reduced pressure on bank financing costs
• a loosening of home loans by regulators
• lower Australian dollar

(We already talked about it on ForexLive, ICYMI:

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