interest rates - rba bias, page-3

Grant,

I think if McFarlane was to be big enough to admit he made a mistake then we would be expecting rate reductions and a contrite attitude from the RBA.

However I fear that egos will play a large part in the actions of the RBA for the next few months at least.

I also think it is inconceivable that they will raise rates so that is some comfort.

Once a sufficient period has passed allowing the RBA a graceful and not too embarassing retreat I'm pretty sure we'll see rate reductions.

With an election looming I think it's 3 months tops before we pull back 25 basis points and then who knows.

I have no economic training my opinion is based on human nature alone.

- Z